The last few weeks haven’t been very kind to oil and gas companies, especially Keppel and the two Sembcorp companies, with Sembcorp Industries reaching 2008 crash levels before rebounding on Friday as well as Sembcorp Marine before rumours that its parent, Sembcorp Industries would inject funds to save it or take over full control of it. With such low prices, are oil and gas companies a good buy at their current price levels.

(Image source: pixabay.com, lalabell68)

There is still an oversupply of oil and with Iranian oil coming to the market, the situation doesn’t look set to improve for a while. Weak demand for oil coupled with excess oil reserves will further dampen the prospects of oil improving in the near future. So anyone investing in oil and gas companies should be prepared to hang on for a while before oil prices recover and hopefully see the fortunes …