- The intensified conflict between Russia and Ukraine has led the Brent and WTI crude oil prices in the international market to surge above the USD 95 mark, the highest level since September 2014.
- Oil and gas exploration companies are going to benefit from the rising crude oil prices.
The Brent and WTI crude oil prices in the international market surged significantly to trade above the USD 95 mark, the highest level since September 2014, following fear of supply-side disruptions amid the rising tensions between Russia & Ukraine. The Russian president Vladimir Putin’s recognition of the Donetsk and Luhansk region of Ukraine escalated the conflicts between the two nations, with many of the Western nations announcing sanctions against Russia, one of the largest oil exporters in the world.
The rising oil prices will have an adverse impact on the global economy and will impact the oil-importing nations leading to higher import bills. At the same time, oil and gas exploration companies are going to benefit from the rising crude oil prices.
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Let us look at 3 FTSE listed oil and gas stocks that may benefit from the recent rise in crude oil prices:
Capricorn Energy Plc (LON: CNE)
FTSE250 listed an independent oil & gas exploration company that carries out its operations from the UK North Sea, Latin America, and West Africa.
The company reported higher crude oil production, which averaged around 36,300 boepd. In 2022, the total oil production is expected to increase further to 37,000-43,000 boepd. The rise in crude oil production and recovery in oil price will benefit the company’s revenue and profitability.
Capricorn Energy Plc shares closed at GBX 209.40, up by 0.77% on 22 February 2022, with a market cap of £1,029 million. The stock has given a return of 11.21 per cent return since the start of the year.
Energean Plc (LON: ENOG)
The company is engaged in the exploration and production of oil and gas. Its principal project is situated offshore of Israel.
For the 12 months ended 31 December 2021, the company reported total production of 41 kboed, which was at the mid-point of the revised full-year guidance of 40-42 kboed. The total revenue generated by the company was at USD 495 million (FY 2020: USD 335.9 million).
Energean Plc shares closed at GBX 987.50, up by 1.91% on 22 February 2022, with a market cap of £1,721 million. The stock has given 15.50 per cent return since the start of the year.
Harbour Energy Plc (LON: HBR)
The independent oil and gas company has a working interest in various projects located in the UK, Indonesia, Norway.
In December 2021, the company completed its drilling activity in the UK North Sea region. The Dunnottar exploration well, which was part of the drilling activity, has a total measured depth of 15,639 feet. The company at present is evaluating the drilling outcomes. Any significant oil discovery will help the company boost its production capability.
Harbour Energy Plc closed at GBX 347.60, up by 0.87% on 22 February 2022, with a market cap of £3,189 million.