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Highlights
- Crude oil prices rose to 7-year highs due to the Houthi group’s attack on the UAE on Monday.
- Both Brent and WTI benchmarks reached their highest levels since October 2014.
Crude oil prices rose to multi-year highs, levels last seen in 2014, after the Houthi Group in Yemen attacked the United Arab Emirates (UAE) that raised the concerns of potential supply disruptions.
Tight supply was another factor supporting the oil price rise amid eased concerns relating to Omicron’s impact on demand.
Both Brent and WTI rose to their highest levels since October 2014. Brent oil March 2022 futures jumped by over 1.17 per cent to USD 87.47 on 18 January 2022 at 09:30 AM BST. Whereas WTI March 22 oil futures were at USD 84.61, up by 1.57 per cent.
Houthi fighters launched missile and drone attacks which led to the explosion of fuel trucks and killed 3 people while several others were injured. The UAE stated it held the right to respond to such attacks. UAE is the 3rd biggest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and is the 7th largest oil producer in the world.
Given this development, let us look at 2 FTSE 100 index listed stocks in the oil and gas sector and explore their investment possibilities:
- Royal Dutch Shell PLC (LON: RDSA)
Royal Dutch Shell is an oil supermajor.
Based on the group’s simplification timetable, FTSE Russell estimates that 28 January will be the last day of trading for the group’s A and B shares.
From 31 January, Royal Dutch Shell PLC is expected to start trading under the simplified Shell PLC, with the A shares continuing to trade on the FTSE Russell indices, while the B shares will be removed from the same.
Image source: Refinitiv
The group’s shares were trading at GBX 1,853.60, up by 0.59 per cent on 18 January at 10:06 AM BST, while the FTSE 100 index was at 7,544.20, down by 0.88 per cent.
The company’s market cap was at £ 75,577.64 million, and it has a one-year return of 24.88 per cent as of date.
Related Read: Shell (RDSA) & Cairn Energy (CNE): 2 energy stocks to buy
- BP PLC (LON: BP)
BP is a British oil and gas giant.
BP and a German utility firm EnBW won the lease option to develop a Scotland based offshore wind project. The two companies will develop the 2.9 GW project in E1 area after it was awarded a lease option from the Scotwind leasing round.
Image source: Refinitiv
The group’s shares were trading at GBX 396.30, up by 0.65 per cent on 18 January at 10:16 AM BST, while the fossil fuel sectoral index was at 6,656.39, up by 0.69 per cent.
The company’s market cap was at £ 77,650.81 million, and it has a one-year return of 31.05 per cent as of date.
