Trustnet Magazine 76 September 2021 - Page 28

YOUR PORTFOLIO
Commodities in focus

“ We expect high volatility in the coming years , leading to prices above $ 100 a barrel ”

Chris Metcalfe Investment and managing director at IBOSS

Oil

Chris Metcalfe , investment and managing director at IBOSS , notes anyone who worked in the banking sector in 2008 probably kept a low profile in the following years . Fastforward to 2021 and he says those who work in oil are in a similar position . “ The sector is attracting criticism from governments , supranational organisations like the EU and the increasing number of proponents of an ESG agenda ,” he explains . However , while oil capex has collapsed , Metcalfe says there is a growing disconnect between the aim of reducing fossil-fuel use and the reality of the world ’ s energy needs . “ We expect high volatility in the coming years , leading to prices above $ 100 a barrel ,” he says . “ It could be an unfortunate outcome that such investment as can be made with such a negative backdrop will be in jurisdictions least able or willing to subscribe to the ESG agenda .
“ While Exxon and Shell are sitting ducks for activists , companies in places such as Russia , Iraq and Iran may be harder to coerce . The likes of Russia may take the opportunity to increase their sphere of influence in the world ’ s energy market .”
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