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Get exposure to rising oil prices: Instreet

With demand from refineries growing and production slowing, Instreet Investment has launched a new product to provide investors with exposure to potential upside of oil.

 

The product dubbed Instreet Link 74 is designed for both retail and SMSF investors.

It allows investors to gain access to the rising oil price with a known risk outcome for a one off upfront payment, a statement from Instreet said.

"This product is ideal for investors who are looking for an investment with a defined outcome, on both the upside and downside," says George Lucas, managing director Instreet Investment.

"The recent sell-off in oil price is due to global crude oil oversupply. While markets are oversupplied, much of the sell-off is more speculative in nature.

"The good news is that oil demand from refineries is already growing at the fastest pace in a decade and Oil production is forecast to rise slower than demand. The future for oil may not be as bleak as it currently seems," he said.

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Technicals, positioning and fund flows have driven much of the oil prices since late 2014.

"Supply from Iran in first half of 2016 may keep the market oversupplied and defer any need to incentivise US production until 2017. However oil supply is always susceptible to geo-political shocks which we have recently seen in Syria. Also there is growing evidence that the fall in Oil prices has prompted the supply cuts needed for a sustained recovery."

An investment in the Instreet Link Series 74 Units is an investment in a Deferred Purchase Agreement linked to the performance of oil.

Investment in the fund closes on 1 November 2015.