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Highlights
- Oil prices climbed on Wednesday for the 6th straight session indicating investors are flocking back to risk assets.
- The rise comes after US industry data relating to crude oil inventories fell for the week ending 24 December and was also supported by strong global equities.
- Investors are now looking at EIA data to be published later today.
Oil prices strengthened further today after US industry data indicated inventories fell, thereby increasing demand sentiment.
The rise in oil prices thus continued its upward trend for the sixth straight session. Both WTI and Brent crude contracts were close to near a month high, boosted by firming global equities.
Brent oil March 2022 futures were higher by 0.29 per cent, at USD 78.90 on Wednesday, 29 December 2021 at 06:34 AM BST, while WTI crude oil February 2022 futures were up by 0.22 per cent, at USD 76.14.
Oil, equities and other asset classes have regained momentum after Omicron fears led to a sharp decline in the last month.
According to data from trade body the American Petroleum Institute (API), crude oil stock in the US (for the week ending on 24 December), dropped to 3.090 million barrels, meeting analyst forecasts. It had earlier reported a draw of 3.67 million barrels in the previous week.
Moreover, US gas inventories fell to a lesser-than-anticipated 319,000 barrels during the period, whereas distillate inventories saw a decline of about 716,000 barrels.
Oil prices were also supported by 3 oil producers declaring sudden closure in December production owing to oilfield shutdowns and maintenance related challenges. Investors are now eyeing US’ EIA data, which is set to be released later today.
Let us explore the investment prospects of these 2 FTSE listed oil stocks, given this context:
- BP PLC (LON: BP)
BP is an oil supermajor and is a part of the FTSE 100 index. The group said that a BP US affiliate is set to buy all of the outstanding common units of BP Midstream Partners LP.
The deal is expected to be complete by Q1 2022.
Image source: EODHD/Others
BP’s shares ended at GBX 337.85, lower by 0.03 per cent on 24 December. The FTSE 100 index had closed at 7,372.10, down by 0.02 per cent.
The group had a market cap of £66,554.27 million as of 24 December. And it had netted shareholders a one-year return of 28.46 per cent as of date.
- Harbour Energy PCL (LON: HBR)
Harbour Energy is a British independent oil and gas firm.
The company said it forecasts its 2022 production to be between 195 to 210 kboepd, according to its 2021 capital markets day note. It added that the company expects its production to average about 200 kboepd between 2022 to 2024.
Image source: EODHD/Others
Harbour’s shares ended at GBX 364.60, higher by 3.34 per cent on 24 December. The FTSE 250 index, which it is a part of, had closed at 23,270.43, up by 0.02 per cent.
The group had a market cap of £ 3,374.49 million as of 24 December. It was admitted into the LSE on 25 June 2021.
