** Oil stocks, left reeling by the brutal crude price dropover past 6 mths, are worth keeping, say fund managers atAllianz Global Investors & Coutts
** Contrarian view; earnings revisions for oil sectortowards lowest since late 2008
Chart: http://link.reuters.com/raw63w
** Matthew Tillett, who runs the Allianz UK Unconstrainedfund, reckons oil price will rebound on a 1-2 yr view; does notsee enough sources of supply that make economic sense atprevailing oil price to meet growing demand
** Valuations of oil majors around multi-decade lows
Chart: http://link.reuters.com/vaw63w
** Tillett highlights robustness of balance sheets of BP & Royal Dutch Shell - each accounting for about4.5 pct of his portfolio - affording flexibility to weather atleast 2 yrs of depressed oil prices
** He says assuming capex falls in line with Allianz GI'sexpectations as industry costs deflate, BP needs about$90/barrel oil price to cover divis in 2015, falling to about$80-85 in 2016
** Recently bought into energy services cos Wood Group & Amec Foster Wheeler
** Coutts' multi-asset fund owns BP & Shell on account ofyield; its global equity strategist James Butterfill highlightsthat BP with divi cover of about 3.4 times can easily pay itsdivi (RM:tricia.wright1.thomsonreuters.com@reuters.net)
