HSBC Says "Unloved" Oil Headed Higher

As the price of oil plunged 8 percent yesterday and is down another 4 percent today, correcting after a three-day climb of 27 percent, the largest move higher in 25 years, leaving algorithmic market observers to wonder as to the performance driver of the move, an HSBC report challenges sellers. Not only does the report consider oil, but its impact on equity prices and a corollary link to a changing face of the energy sector is at play.

HSBC: Oil price plunge created $2.2 trillion wealth transfer, as “most unloved” sector might now be a buy

Tuesday’s report, titled “The 2.2 trillion dollar question,” considers the fundamental...