Oil sector is a very important component in the energy sector. Oil price generally ranged between USD 70 to 90 per barrel in 2010. Thanks to the seasonal demand and the QE2, oil price started to step up since November. Undoubtedly, energy sector funds benefit from the rising oil price – the Sector Equity Energy fund category earned 11.98% on average this year as of 29 December 2010 – gained excessively 10 percentage points when compared with its performance as of November end. However, this also shows the risk and volatility of this energy sector.
This week we have Franklin Natural Resources Fund and Investec GSF Global Energy Fund for comparison.
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