- Saudi Aramco lowered its February prices of all crude oil grades, for its Asian customers.
- Oil prices have risen again on easing investor concerns over Omicron’s spread impacting economic recovery.
The world’s largest oil firm, Saudi Aramco, lowered its February prices of all crude oil grades for its Asian customers on Thursday. It reduced its Arab Light grade for February, by about US$ 1.10, to US$ 2.20 per barrel.
The cut was though lower than analysts estimated cut of US$ 1.25, according to a recent Bloomberg survey.
The move comes just days after OPEC+ agreed to increase its supply in February by about 400,000 barrels per day, despite forecasting the market would face an oversupply in January.
Crude oil WTI February 2022 prices were trading higher by 1.73 per cent at USD 79.19. Brent oil March futures were higher by 1.41 per cent at USD 81.94, on 6 January at 11:05 AM.
Brent’s prices were above USD 80 per barrel as investor concerns eased over the spread of the Omicron variant affecting global economic recovery.
However, OPEC+ maintained a cautious outlook thus leaving an option to hold the rise in output in case the demand sees a drop or significant amounts of oil are in storage.
Let us look at 2 AIM-listed oil stocks and explore their investment prospects:
- Coro Energy PLC (LON: CORO)
Coro is a UK-based energy company that is focused on the Southeast Asian region. It is listed in the FTSE AIM All-Share index.
The group shares surged over 3 per cent today following the publication of its latest research note. According to the note, the group’s Duyung PSC’s Mako Gas Field is positioned to supply gas to Singapore. The gas field is expected to start production by 2024.
Image source: Refinitiv
The group’s shares were trading at GBX 0.34 on 6 January 2022 at 11:05 AM BST. It has a market cap of £7.01 million as of date.
The FTSE AIM All-Share index was at 1,196.95, lower by 1.16 per cent.
- SDX Energy PLC (LON: SDX)
SDX Energy is MENA focused exploration and production energy company listed on the FTSE AIM All-Share index.
The group’s shares surged over 10 per cent today after it reported the commencement of oil production at its MSD-21 Well, located in the West Gharib Concession in Egypt.
It expects its post-clean up stabilized gross production rate to be around 300 barrels per day, which is in line with its estimates from pre-drill phase.
Image source: Refinitiv
The group’s shares traded at GBX 10.75 on 6 January 2022 at 11:18 AM BST. It has a market cap of £20.02 million as of date.