Some U.S. Fund Managers Still Bet on Oil

While most financial experts predict the end of big oil, a few U.S. Fund Managers continue to back oil stocks. Last week oil fell below $41 per barrel a 6 ½ year low price. The FPA Capital Fund, the Towle Deep Value Fund and the Mount Lucas US Focus Equity Fund continue to predict that, “U.S. production will retreat sharply over the next 12 months, setting the stage for a rebound towards $65-70 per barrel that would allow most U.S. shale oil producers to stay profitable in the longer term.” Dennis Bryan, co-portfolio manager FPA Capital Fund says, "We're setting ourselves up for the next cycle." He notes, “U.S. oil companies have cut their capital expenditures by 35 percent this year, (he) expects the supply glut to ease by the end of this year.”