Potential bubble emerges in oil and gas sector

With the oil price teetering on record highs, investors may well find themselves drawn to the oil and gas sector. Despite signs of a bubble, there is no arguing with supply and demand

There are already signs of a potential bubble emerging in the oil and gas sector, with a significant number of more speculative exploration and production (E&P) companies coming to the fore, particularly on the junior market. Yet, oil nudging the psychological $100/barrel mark begs the question as to the true state of the oil sector and the fundamental outlook emerging. The central factor that makes oil attractive in the current climate is the argument of supply. In all likelihood, we are witnessing a permanent departure from the historical boom and bust cycle of the market. While oil pri...