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BDO warns against equity market oil complacency
08 March 2011
BDO Investment Management has warned that there are 10 reasons contributing to why equity markets are complacent about oil
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BDO Investment Management
BDO Investment Management has warned that there are 10 reasons contributing to why equity markets are complacent about oil.
Firstly, BDO warned that the situation in the Middle East remains unstable and the region could see more revolutions. Democratic revolutions have succeeded in Tunisia and Eygpt, with Libya seemingly on an unstoppable path to a new government. It seems unlikely that the desire for more democracy across the region will simply dissipate. Oman and Bahrain appear to be the next key flashpoints, the firm said.
BDO warns that the latter is particularly significant because of the proximity to Saudi’s major oil fields; Saudi has reportedly sent tanks into Bahrain. The Ghawar oil field is the largest in the world, producing an estimated five million barrels of oil per day (mn b/d). This equates to more than 6% of global supply.
If unrest spread to Algeria which has a...
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