There’s nothing like splashing in the waves with family, friends and the plastic garbage that’s floating in the water.
Investors could be underestimating what this war on plastic means, according to Nick Stansbury, a fund manager at U.K.-based Legal & General Investment Management. The backlash is bearish for oil companies XLE, -0.43% and crude prices CLU8, +0.73% , he suggested in a statement this month.
“Investors need to recognize the risk that long-term oil demand growth cannot be relied upon, as plastic and therefore, oil consumption, is dramatically reduced,” said the LGIM strategist, referring to the fact that plastic items are made from oil.
“Peak demand is coming sooner than many believe. The destabilizing effect on oil markets will be profound, and we believe that investors, and oil companies, need to start taking those risks more seriously.”
- ^ including straws (www.marketwatch.com)
- ^ bags (www.marketwatch.com)
- ^ XLE, -0.43% (www.marketwatch.com)
- ^ CLU8, +0.73% (www.marketwatch.com)
- ^ in a statement this month (www.legalandgeneralgroup.com)
- ^ made from oil (science.howstuffworks.com)
- ^ Aramark to ‘significantly reduce’ single-use plastics by 2022 (www.marketwatch.com)
- ^ Hyatt joins list of companies eliminating plastic straws (www.marketwatch.com)
- ^ call of the day for our Need to Known column (www.marketwatch.com)
- ^ Sign up here. (www.marketwatch.com)