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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Oil & Gas Review - Three interesting ideas

April 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Oil & gas stocks bounce from depressed levelsA fascinating note by GMP Securities points out that the oil price has lost over 40% of its value on five occasions over the past 30 years but has always recovered most of the lost ground within 1-2 years. GMP believes the spark for the next up-cycle could be softening US production data and sure enough the oil price has recovered from US$45 to US$57, mainly reflecting a 30% reduction in the US rig count to 1,670 in the year to 20 February, figures courtesy of energy consultancy Baker Hughes.This decline is mainly due to fracking oil firms who are heavily borrowed and need a high price to break even. The lost production will eventually cause a major price recovery and we list ...

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