Is the shale gas 'tsunami' still good value?

ENERGY

Oil prices have been buoyed by crisis in the Middle East in recent months, but suppressed by the shale tsunami. Michael Hulme, manager of the Carmignac Portfolio Commodities fund, explores the best stocks to access the sector.

The five-year average price of Brent crude moved above $100 for the first time on 16 June. This would have seemed an extraordinary number at the turn of the millennium, and pretty shocking in the aftermath of the financial crisis. However, with hindsight, it is not all that remarkable. Since 2002, China has embarked on a rapid industrialisation path with the urbanisation of over half its population. Since then, oil demand in China has risen 80% to four million barrels a day. Meanwhile, oil production in the North Sea has fallen by over half, and in the US Gulf by 30%. It has become ha...