** AllianzGI's Matthew Tillett takes advantage of depressedprices presented by the recent market meltdown to add toholdings in BP & Royal Dutch Shell aswell as smaller cos (names undisclosed) in the sector
** Tillett, who runs the Allianz UK Unconstrained fund,flags that oversupply in the oil market is far less severe thanit was in previous downturns e.g. 1980s, late 1990s & 2008
** PM envisages relative stability to return to the marketover the next 1-2 years through a combination of production cuts& oil price recovery, so improving the sector's prospects
** View a contrarian one: earnings revisions for oil sectortowards lowest since late 2008 Chart: http://link.reuters.com/raw63w
** But 14-16% declines in the 2 weeks to Wednesday have leftvaluations of BP & Shell near around multi-decade lows Chart: http://link.reuters.com/vaw63w
** BP & Shell (B) each account for about 4% of PM'sportfolio
** The second big merger since oil prices started a 60 pctslide last year -- with Schlumberger buying equipmentmaker Cameron International for $14.8 bln -- suggestsome companies in the sector are eyeing a recovery (RM: tricia.wright1.thomsonreuters.com@reuters.net)