Hanglung Group Buying Energy On Pullbacks

Online, March 7, 2011 (Newswire.com) - (Precision-Guiding Your Investments) - Hanglung Group: Despite claims to the contrary, Saudi Arabia could face protests similar to those which ousted Mubarak.

Hanglung Group oil analysts have added several energy stocks to their conviction buy list after King Abdullah of Saudi Arabia announced $36bn in extra benefits to help ward off a domestic example of the wave of uprisings that has swept through the Middle East and North Africa.

The analysts reportedly believe that the King's largesse would not have been made were there not a significant risk of the type of revolt that toppled governments in Egypt, Tunisia and plunged Libya into near-civil war.

"We've added the stocks but with a proviso that clients wait for a pullback in prices in the short-term. If the selected stocks continue to rise, we don't advise chasing them," said a senior Hanglung Group oil analyst.

Prices have risen to over a $100 a barrel on concerns that the situation in Libya could descend into all out civil war even though the country produces only 2% of the world's daily output.

Markets are watching the situation in Saudi Arabia very closely since any disruption in oil production there would dramatically spike the oil price and almost certainly push the global economy firmly back into recession.

Hanglung Group says that the energy stocks added to the conviction buy list represent a play on oil and gas without the risk of exposure to the actual commodity on the futures markets.