Home Business News Oil stocks lead the FTSE 350’s November rally as OPEC prepares to meet

Oil stocks lead the FTSE 350’s November rally as OPEC prepares to meet

by LLB Editor
24th Nov 20 10:56 am

It’s a bit of a nightmare for investors who put maximum store on environmental, social and governance (ESG) screens and factors at the top of their list when it comes to picking stocks, but over the last month Oil & Gas Producers, Automobiles and Parts and Oil Equipment & Services are the best three performers out of 39 industry groupings in the FTSE 350,” says Russ Mould, AJ Bell Investment Director.

“Hopes for an economic recovery, boosted by vaccines, are helping to support the oil price and fuel this share price rebound, which now leaves investors in Big Oil (or those who wish to avoid it) looking ahead to next week’s OPEC meeting.

Best and worst performing sectors within FTSE since 24 October 2020
Top10 Performance   Bottom 10 Performance
Oil & Gas Producers 34.0%   Pharmaceuticals & Biotechnology 1.6%
Automobiles & Parts 32.9%   Healthcare Equipment & Services 0.4%
Oil Equipment & Services 32.8%   Chemicals (1.5%)
Banks 23.4%   Gas, Water & Multi-Utilities (1.9%)
Aerospace & Defence 22.0%   General Retailers (2.0%)
Life Insurance 19.9%   Electronic & Electrical Equipment (3.6%)
Travel & Leisure 19.5%   Personal Goods (5.4%)
Nonlife Insurance 18.2%   Software & Computer Services (7.7%)
Fixed Line Telecoms 14.4%   Leisure Goods (10.3%)
Food Producers 10.7%   Technology Hardware & Equipment (11.4%)

Source: Refinitiv data

“The Organization for the Petroleum Exporting Companies turned 60 this year and few of the 13-nation grouping’s previous 179 meetings will have been as important as this one, even if it will take place remotely rather than in the usual location of Vienna.

“Oil, as benchmarked by Europe’s Brent Crude, has bounced back from the chaos of spring when the price of a barrel briefly went negative, as demand collapsed due to the pandemic and there was so much of the stuff sloshing around that no-one knew where to put or store it.

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