- Oil prices are expected to see the best monthly performance, last seen in February 2021.
- Supply shortages and geopolitical concerns in the Middle East and Eastern Europe has led to a rise in oil prices.
- Both Brent and WTI oil prices had touched a near 7-year high in the previous trading session on Friday.
Both the major benchmark oil prices, Brent and WTI, increased by more than 1 per cent today amid concerns of supply shortages and ongoing geopolitical tensions in various parts of the world. Oil prices are expected to see their best monthly performance this month, rising by nearly 17 per cent, since February 2021.
Ongoing fears of a worsening situation between Russia-Ukraine relations and tensions in the Middle East added to supply related constraints, thus pushing prices higher.
Brent Oil Futures for April 22 contract was trading at USD 89.54, up by 1.15 per cent on 31 January at 06:45 AM BST. Meanwhile, the WTI Crude oil March 22 future contract was at USD 87.90, higher by 1.24 per cent.
Both the benchmarks touched nearly 7-year highs on Friday (Brent saw a high of USD 91.70 and WTI prices were at USD 88.84). Such levels were last seen in October 2014.
Given this development, let us, deep dive, into 2 FTSE listed oil and gas stocks and explore their investment opportunities:
- Harbour Energy PLC (LON: HBR)
Harbour Energy is a UK based oil and gas firm. The company recently reported it had completed its drilling of the 30/8-4 Dunnottar exploration well, in licence P2399. The Dunnottar project is located in the UK North Sea.
The drilled well had a total measured depth of about 15,639 feet. The company stated that it had discovered hydrocarbon-bearing intervals in the Palaeocene, Jurassic and Triassic.
Image source: Refinitiv
Harbour’s shares closed at GBX 355.40, down by 1.55 per cent on Friday. The FTSE 250 index ended at 21,643.30, down by 0.97 per cent.
The company has a market cap of £3,289.34 million as of 28 January 2022
- Energean PLC (LON: ENOG)
Energean is a UK based exploration and development company. The company’s revenues, for the 12 months to 31 December 2021, stood at US$ 495 million, up from US$ 335.9 million in the year before.
During the period, the cost of production (excluding flux) stood at US$ 246.2 million, compared to US$ 198.9 million in the previous year. Its EBITDAX rose to US$ 202.9 million, up from US$ 107.7 million in the year-ago.
Image source: Refinitiv
Energean’s shares closed at GBX 971.00, up by 1.73 per cent on Friday. The company has a market cap of £ 1,724.52 million as of 28 January 2022.