- Oil prices extended their gains today amid rising optimism of Omicron’s likely limited impact on global fuel demand and economic growth.
- South African scientists said the new variant has not shown signs of severe sickness as yet, thus easing investor concerns.
- Investors are looking ahead at OPEC+ meeting on January 4 for upcoming oil cues.
Oil prices extended their gains today, following improvement in investors sentiment amid easing of concerns over the new Omicron variant’s impact on global fuel demand and economic growth.
Investors now believe omicron’s impact on fuel demand will likely be limited as the risk of severe levels of sickness are seen as fairly low thus far.
Scientists in South Africa, where the omicron variant first emerged, said last week that there are no indications as yet of the new variant leading to more severe illness. South African officials recently reported a vaccine booster rollout plan amid daily cases nearing an all-time high.
Brent oil February 2022 futures rose by 1.44 per cent to US$ 76.24 on 13 December at 07:02 AM BST. And, the WTI crude oil January 2022 futures stood at US$ 72.81, higher by 1.13 per cent.
Investors are now awaiting the next OPEC+ meeting scheduled for 4 January for cues. The meeting is expected to discuss oil production limits for the month of April.
In view of this, let us take a look at 2 FTSE listed oil and gas stocks and their investment prospects:
- 88 Energy Ltd (LON: 88E)
88 Energy is an Alaska focused oil and gas exploration company. The stocks of the company are a part of the FTSE AIM All-Share index.
The group said its Merlin-2 appraisal well’s permit to drill expected by end of year, in its recently published Merlin-2 operations update.
It added that its Arctic Fox rig commissioning is scheduled for January next year, and the Merlin-2 appraisal well spud is expected to be on track for February of next year.
Image source: Refinitiv
88 Energy’s shares closed at GBX 1.38, down by 1.43 per cent on 10 December, while the FTSE AIM All-Share index ended at 1,190.95, down by 0.46 per cent.
The company’s market cap is at £181.42 million, and its one-year return was at 213.78 per cent as of Friday.
- TransGlobe Energy Corporation (LON: TGL)
AIM listed firm TransGlobe Energy Corporation is an independent oil and gas company with operations in various regions, including Egypt and Canada.
The company recently issued a comment on market speculation, stating it has not yet received official approval from the Egyptian Parliament regarding the Eastern Desert production sharing contracts.
Image source: Refinitiv
TransGlobe’s shares closed at GBX 220.00, down by 2.22 per cent on 10 December. The company’s market cap stood at £159.59 million, and its one-year return was at 175 per cent as of Friday.