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UCS Stock Market News Today: Oil and Gas update


The Oil and Gas markets continues to recover with many issues that we follow maintaining their gains over the last 4 trading sessions this week.

Complete Text of Video:

A current WSJ article states that with the prospects of rising oil prices, Big Oil companies are considering a strategy that has been unthinkable for much of a two-year-long market slump, 'making new investments'. "Big oil companies are moving ahead with new spending again", says BP PLC Chief Executive Bob Dudley on the sidelines of the Oil and Money conference in London. The British oil company he heads, "has taken final investment decisions on a handful of projects this year and is expected to approve more in 2017", he said. Major oil companies are beginning to invest in projects as oil prices show signs of recovery. Bob Dudley, CEO of BP, said "Investments are back. But it’s only going to be the very best." Is there light at the end of the Tunnel?

 Our Commentary: Only time will tell if new spending will make a difference in oil prices. I read those comments with healthy skepticism. There is still an oversupply of oil on the global markets. To suggest that since oil companies have begun spending again that the markets have somewhat recovered is very premature.

My advice is to continue to look for diversified oil and gas producers whose stocks may still be undervalued and stock price reflects that. Stay away from oil and gas companies with high debt loads as their stocks are more susceptible to huge drops on negative market news.

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