Oil Sector Looking Even Stronger
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Sep
4
Jonathan Yates
Oil Sector Looking Even Stronger
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Recent events have demonstrated, yet again, the enduring appeal of the oil and natural gas industry.  That has been the topic of other articles on this site. Tension in the Middle East, a recent report by the US Government, and bullish news from oil and natural gas entities, both large and small, have kept the prices high in the sector.   As the chart below shows, the exchange traded fund for oil, United States Oil (NYSE: USO), has been very strong.

While some of that is due to the unrest in Syria, there has been a round of good news from oil companies around the world.  YPF (NYSE: YPF), based in Argentina, has quarterly sales growth soaring.  Americas Petrogas (TSE: BSX), based in Canada, just announced earnings that featured a 75% increase in net revenue.  A report was just released showing very significant reserves that have Octagon 88 (OTCBB: OCTX), and oil and natural gas firm headquartered in Switzerland with assets in Alberta, to be potentially very undervalued.  And in the ultimate bullish sign for the sector, legendary investor Warren Buffett now has a large position in Suncor (NYSE: SU), a oil company with operations around the world.

Oil stocks should remain high based on a report just released by the US Energy Administration.

That study projected that the global usage of energy would increase by 56% by 2040.  Most of that energy will be supplied by fossil fuels.  Again, oil and natural gas will be the most attractive.  Coal is too dirty and alternative energy is simply not feasible.

For investors, the outlook for the oil industry remains bullish.  The selection in the sector runs from small caps such as American Petrogas and Octagon 88 to multinationals like Suncor.  For growth, value, and income investors, the oil and natural gas industry continues to be superior!

 

 



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