Rising oil prices are the biggest risk to the Indian equity story from a five-year horizon, says Christopher Wood, managing director and equity strategist at CLSA in his weekly note to investors, GREED & fear. He expects oil prices to hit $100 per barrel if the United States (US) ends all Iran sanction waivers after May 2 and suggests the best way to hedge this risk is to own oil stocks. However, as a base-case, Wood expects US President Donald Trump to soften his stand.
“It is also the case that it makes no sense to pick a row with China on buying Iranian oil, and there will be a row if the waivers are not renewed, at the same time as the Donald is hoping to secure a trade deal, and a ‘win’ with Beijing.
