Shell, Vivo Energy: Oil stocks to keep an eye on amid Russia supply fears

Highlights

• The global market is witnessing a turbulence after Russia started a large-scale military attack on Ukraine.
• On Thursday, Brent crude hit over US$100 a barrel for the first time since August 2014.
• The UK energy regulator, Ofgem may further increase the energy bills price cap to £3,000 in October.

The global market witnessed a turbulence on Thursday after Russia started a large-scale military attack on Ukraine, following which there was a surge in prices of commodities, from oil and gas to wheat.

Saudi Arabia is the world’s largest oil exporter, followed by Russia that exports most of its crude oil to European refineries and is also the largest natural gas supplier to Europe, providing around two-fifth of its supply. On Thursday, Brent crude hit over US$100 a barrel for the first time since August 2014, following a rise of over 8% in international energy markets.

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The prices of gas in UK for next-day delivery surged by 53% to 326p per therm, which could force UK energy regulator Ofgem to further increase the energy bills price cap to £3,000 in October. The energy regulator has already announced the price cap will rise by 54% in April.

As the Russia-Ukraine crisis intensifying, the global oil prices have surged over US$20 a barrel since the start of 2022 with the US and European Union planning to impose tougher sanctions on Russia to affect its economy by targeting oil and gas and banking sectors. The RAC has warned that petrol and diesel prices could further rise in the coming days if the Russia-Ukraine tension worsens. The US and EU impose more sanctions and crude oil prices reached record levels.

Let us look at five FTSE-listed oil and gas stocks that may get impacted by rising prices.

1. Shell Plc (LON: SHEL)

FTSE 100-listed Shell Plc operates as an oil and gas company globally. It is engaged in the exploration, production, and marketing of its products. The company’s market cap stands at £148,748.53 million as of 25 February 2022. Since the start of 2022, it has provided its shareholders with a return of 20.71% as of 25 February 2022, while its one-year year stands at 30.92%. Shell plc’s shares were trading at GBX 1,956.40, up by 0.81%, at 8:30 AM (GMT) on 25 February 2022.

Also Read: AltynGold, Endeavour Mining: Stocks to eye as gold hits one-year high

2. BP Plc (LON: BP.)

FTSE 100-listed BP Plc operates an oil and gas company with operation across Australia, Europe, Americas, Africa, and Asia. The company is also listed on the New York Stock Exchange. The company’s market cap stands at £71,331.78 million as of 25 February 2022. Since the start of 2022, it has provided its shareholders with a return of 12.63% as of 25 February 2022, while its one-year year stands at 22.23%. BP plc’s shares were trading at GBX 371.10, up by 1.57%, at 8:30 AM (GMT) on 25 February 2022.

3. Diversified Energy Company Plc (LON: DEC)

FTSE 250-listed Diversified Energy Company Plc operates as an energy company, engaged in the production, marketing and transportation of essentially petroleum gas identified with its synergistic US coastal upstream and resources. The company’s Market cap stands at £1950.24 million as of 25 February 2022. Since the start of 2022, it has provided its shareholders with a return of 8.24% as of 25 February 2022, while its one-year year stands at -10.98%. Diversified Energy Company plc’s shares were trading at GBX 112, up by 0.18%, at 8:30 AM (GMT) on 25 February 2022.

4. Vivo Energy Plc (LON: VVO)

FTSE 250-listed Vivo Energy Plc operates as a downstream petroleum company across 23 countries across Africa. It is engaged in distributing and marketing Shell and Engen branded fuel and lubricants and is also listed on the Johannesburg Stock Exchange. The company’s market cap stands at £1,707.84 million as of 25 February 2022. Since the start of 2022, it has provided its shareholders with a return of 1.13% as of 25 February 2022, while its one-year year stands at 48.92%. Vivo Energy Company plc’s shares were trading at GBX 133.80, down by 0.74%, at 8:30 AM (GMT) on 25 February 2022.

Also Read: FRES, SHEL, BA.: 3 FTSE 100 bright spots amid geopolitical tensions

5. PJSC Lukoil (LON: LKOH)

PJSC Lukoil is the second largest oil and gas company in Russia that serves customers in over 100 countries in Asia, Europe, Africa, and America. The company has a retail network of 5,044 filling stations in 19 countries and accounts around 2% of the world’s oil production and around 1% of the proven hydrocarbon reserves. The company’s market cap stands at £21,135.89 million as of 25 February 2022. Since the start of 2022, its share value depreciated by -41.83% as of 25 February 2022, while its one-year year stands at -33.37%. PJSC Lukoil’s shares were trading at US$ 52, up by 28.39% at 8:30 AM (GMT) on 25 February 2022.