A new study finds that nearly two-thirds of investors believe that the price of oil is set to rise.
Investors are confident that the price of oil is set to go up, while others believe the commodity is a good investment for other reasons.
A survey by Barclays Wealth asked investors why - if at all - they would invest in oil. Four out of five said that they would invest in oil, with nearly two-thirds citing an expected price increase as a reason. Around one in eight said they would do so to diversify their portfolio, while six percent would use oil to hedge against inflation.
Barbara-Ann King, head of investment at Barclays Stockbrokers, said that oil is still "one of the most sought after substances in the world". She continued: "It is intrinsically linked to the economies of both the developed and emerging markets and can be both an indicator for economic health and a driver of it."
Oil broke the "psychologically important" $50 barrier at the end of March, during a bull run which had begun in the middle of February. According to Barclays, this was helped by moves in the US to stimulate the economy, which should lead to lower interest rates and in turn, higher consumer borrowing.
This results in higher consumer spending, creating more demand for oil and therefore raising its price.
