Market Wrap - Stock pick — Oil
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Viv Govender from Rand Swiss Offshore chose Oil as his stock pick of the day.
"It's oil I do think that the oil price right now could be pushing a lot of upside. Demand is slowly returning to the world but what's really going to help it is that supply is under severe constraint. We have Opec+ constraints, we have the US constraint and I think for the last couple of years there's been a significant under investment in oil, capacity or growth, exploration and the development of resources, and so if we do see the demand returning to any reasonable level, I think the world will be in for a bit of a squeeze."
"It's oil I do think that the oil price right now could be pushing a lot of upside. Demand is slowly returning to the world but what's really going to help it is that supply is under severe constraint. We have Opec+ constraints, we have the US constraint and I think for the last couple of years there's been a significant under investment in oil, capacity or growth, exploration and the development of resources, and so if we do see the demand returning to any reasonable level, I think the world will be in for a bit of a squeeze."
