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For investors looking to play a longer-term view on oil and the cyclical recovery, an alternative may be via the BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL). We believe a number of structural tailwinds could emerge for the major component companies of the index FUEL aims to track, noting the index has historically had a relatively high correlation to the price of oil, with an ~84% correlation of monthly returns with the Brent Crude Oil USD/bbl since the end of 2018.
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