2 FTSE Oil Stocks To Buy As Prices Rise Due To Better Risk Appetite
Oil prices strengthened further today after US industry data indicated that inventories fell, increasing demand sentiment.
The rise in oil prices continued its upward trend for the sixth consecutive session. WTI and Brent crude contracts were nearing their highest month, boosted by the strengthening in global equities.
Oil, stocks and other asset classes regained momentum after Omicron fears drove sharply down last month.
According to data from the trade body American Petroleum Institute (API), the U.S. crude oil inventory (for the week ending Dec. 24) fell to 3.090 million barrels, according to analysts’ forecasts. It had previously reported a draw of 3.67 million barrels the previous week.
In addition, US gas inventories fell to 319,000 barrels lower than expected during the period, while distillate inventories were down by approximately 716,000 barrels.
Oil prices were also supported by 3 oil producers reporting a sudden shutdown of production in December due to oilfield closures and maintenance issues. Investors are now eyeing US EIA data, which is expected to be released later today.
Let’s explore the investment prospects of these 2 oil stocks listed on the FTSE, in this context:
- BP PLC (LON: BP)
BP is an oil supermajor and is included in the FTSE 100 index. The group has said that a US subsidiary of BP will purchase all of the outstanding common shares of BP Midstream Partners LP.
The deal is expected to be finalized by the first quarter of 2022.
Image source: Refinitiv
BP stock closed at 337.85 GBX, down 0.03% on December 24. The FTSE 100 index closed at 7,372.10, down 0.02%.
The group had a market capitalization of Â£ 66,554.27million as of December 24. And it had reported shareholders a one-year return of 28.46% to date.
- Harbor Energy PCL (LON: HBR)
Harbor Energy is an independent UK oil and gas company.
The company said it expects its production in 2022 to be between 195 and 210 kbpd, according to its 2021 Capital Markets Day rating. He added that the company expects its production to be on average of about 200 kbpd between 2022 and 2024.
Image source: Refinitiv
Harbor stock closed at 364.60 GBX, up 3.34% on December 24. The FTSE 250 index, of which it is a part, closed at 23,270.43, up 0.02%.
The group had a market capitalization of Â£ 3,374.49 million as of December 24. He was admitted to the LSE on June 25, 2021.