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Highlights
- With inflation touching almost a 30-year high, UK household budgets are being squeezed further due to rising petrol prices.
- Trading at its highest price in seven years, a barrel of Brent crude reached a price over US$96 on 14 February.
Inflation levels in the UK have surged lately, nearly touching a 30-year high of 5.4% as per the official figures released last week. The already squeezed budgets of the UK households are being burdened even further now with the prices of petrol touching record high levels. According to the AA, petrol prices have crossed last year’s 21 November record level of 47.72p, reaching 148p a litre on 13 February 2022. Additionally, as compared to the price level of 51.10p on 20 November 2021, diesel prices have also surged to 151.57p a litre.
The primary reasons for this surge in prices are the revival of the global economies post the pandemic, and the ongoing crisis between Russia and Ukraine. Trading at its highest price in seven years, a barrel of Brent crude reached a price over US$96 on 14 February. The Russia-Ukraine crisis has a significant impact on the global energy market as Russia is the third largest producer of oil across the globe.
Due to this, markets across the globe panicked on Monday, with around £58 billion being wiped out of the top 350 companies trading in London. The FTSE 100 index was also trading at its lowest level in two weeks. Investors in Europe as well as Asia have become pessimistic because of the latest developments in Russia and Ukraine.
Let’s take a look at 3 UK oil stocks that may be impacted by the crisis.
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BP plc (LON: BP)
London-headquartered BP plc is a UK-based oil and gas firm is one of the world's seven oil and gas supermajors. It is listed on the London Stock Exchange’s main market since 1954 and is a constituent of the FTSE 100 index. BP shares were heavily impacted as the company has a stake of around 20% in Rosneft, the Russian energy giant.
The market capitalisation of the oil major stood at £78,475.58 million and it has provided a return of 53.04% to its shareholders over the last one year as of 14 February, while its year-to-date return stood at 21.23%. BP plc’s shares closed at GBX 400.65 on 14 February 2022.
Shell Plc (LON: SHEL)
London-headquartered oil and gas firm Shell plc has recently changed its name from Royal Dutch Shell plc, and it is listed on the LSE, NYSE and Euronext Amsterdam. As per the Q4 results declared recently by the company on 3 February, its shareholders were attributed with income of around US$11.5 billion.
The market capitalisation of the FTSE100-listed company stood at £153,088.83 million and it has provided a return of 47.68% to its shareholders over the last one year as of 14 February, while its year-to-date return stood at 23.66%. Shell plc’s shares closed at GBX 2,005.50 on 14 February 2022.
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PJSC Lukoil (LON: LKOD)
Russia-based globally operating energy business PJSC Lukoil mainly focuses on extracting, producing, transporting, and selling petroleum, petroleum products, as well as natural gas. It is listed on the London Stock Exchange’s main market since 1997 and is a constituent of the FTSE IOB index.
The market capitalisation of the company stood at £45,657.76 million and it has provided a return of 14.42% to its shareholders over the last one year as of 14 February, while its year-to-date return stood at -0.51%. PJSC Lukoil’s shares closed at GBX USD 89.04 on 14 February 2022.
