New York, NY (PressExposure) June 01, 2009 -- "Source One International" apparently advised its client base to ignore mainstream commentary focusing on so-called demand destruction in the market for crude oil when recommending they acquire stock in oil major, BP.
Their boldness appears to have been justified given the resurgence in the price of oil and the knock-on effect on BP's share price. Having issued the buy recommendation in mid-October 2008, the stock has rallied, albeit in anything but a straight line, from as low as 370p to above 500p on the London Stock Exchange.
"Source One International" reportedly recommends that clients hold the stock in anticipation of the continuation of price increases in oil. An unnamed source at the firm added that recent encouraging economic news from China and a surprise victory for the Congress Party in India's general elections last week would likely see demand increase in the months going forward.
Despite a raft of troubles for BP including a protracted dispute over its TNK-BP joint venture in Russia, the company is well-placed to take advantage of the secular bull market in crude oil.
Although "Source One International" are rumored to believe that BP may one day be the target of acquisitive Chinese or Brazilian oil giants, the unnamed individual said that the firm represented excellent growth potential in its own right.