http://www.goldline.com/d/index.html?id=842
Tags: oil
Citigroup Inc. is recommending investors buy shares of emerging-market energy companies to benefit from the rising price of oil.
Geoffrey Dennis, Citigroup’s global emerging-market equity strategist, raised his rating on the sector to overweight, according to a research note e-mailed Thursday. Citigroup estimates Brent crude will average $125 a barrel in 2012. Brent for May settlement fell 0.9 percent to $123.14 on the London-based ICE Futures Europe exchange Thursday.
Russia, Colombia and Brazil will benefit from higher oil prices because they export the fuel, while countries dependent on imports including Taiwan, South Korea and the Czech Republic will suffer, Dennis said.
Dennis estimates emerging-market stocks will gain another 15 percent this year, according to the note, and energy companies will outperform as long as oil prices move higher. The MSCI Emerging Markets Index of developing-country stocks has climbed 14 percent this year.
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