BlackRock Real Asset Trust (AMEX:BCF)

NetscribeREIT (42.46) Submitted: 3/28/2007 9:28:58 AM : Start Price: $9.56 BCF Score: +19.78

BlackRock Real Asset Equity Trust (The Trust) is a non-diversified, closed-end management company. The trust has an investment objective to invest at least 80% of its total assets in securities of companies engaged in energy, natural resources and basic materials businesses and companies engaged in associated businesses and equity derivatives with exposure to those companies. These companies include those engaged in businesses such as integrated oil, oil and gas exploration and production.
The demand for oil from refiners is seasonal in nature and hit its peak during April and May. This is the period when maintenance ends and refineries begin producing more gasoline out of crude oil. The recent surge in oil prices were on account of Iran America political tensions and are expected to increase in the coming months. Moreover, S & P and Global Insight predicts that the demand for oil will increase by around 1.8% in 2007. Further, there are a large number of projects slated to come on stream through 2007, it is well anticipated that worldwide demand for oil will exceed supply growth in 2007 by about 1.5 million barrels per day, thereby exaggerating the demand-supply mismatch.
Prospects for natural gas industry appear bright in U.S. as the demand for natural gas is rising owing to rise in industrial and residential consumption. It is predicted that the renewed demand from residential sector for heating purpose and heightened industrial usage would lead to growth in natural gas consumption by 900 billion cubic feet in 2007. The positive outlook for energy and natural gas sector should benefit The Trust, which has an investment objective to invest in these sectors and thereby making the stock a good buy.