The price of a crude oil fell 2.6% to $45.68 a barrel on Tuesday afternoon, prompting a fall in the value of FTSE shares and a shaky start for Wall Street stocks in early trading.
Despite the fall, Robinson claimed the price of a single barrel could still rise to more than $60 in 2017, and could even hit $80 as new projects come online in 2018 and 2019 if the market appears “tight”.
Robinson, manager of the Global Energy Fund, remains convinced conditions will support prices drifting higher by the end of the year, a view echoed by others when the price of a barrel first slumped to $50 in May.
The oil markets will remain a good place for investors over the next three to five years, Robinson argues.
“While fear and scepticism continues to feature heavily within the market, we believe this is an interesting time to invest in energy,” he added.
“After years of shrinking cash flows – with the resulting decimation of capex on long-cycle oil supply projects that take four to eight years to start production – the market is finally clearing its excess oil inventories.”
