- Chancellor Rishi Sunak is under extreme pressure to balance out the cost-of-living crisis in his spring statement on Wednesday.
- The government is facing pressure from some MPs and motoring groups to cut fuel duty as oil prices are touching new highs amid Russia and Ukraine crisis.
- On Monday, oil prices jumped by 7%, with global benchmark Brent crude prices soaring to over US$115 (£87.11) a barrel.
Chancellor Rishi Sunak is under extreme pressure to announce measures in his spring statement on Wednesday to ease the rising inflation and soaring energy bills squeezing the household budget.
The UK government is facing pressure from some MPs and motoring groups to cut fuel duty as oil prices are touching new highs amid Russia and Ukraine tensions. Fuel duty currently accounts for over a third of a liter petrol price, making it around 58p per liter. Further, VAT of 20% has been applied on the petrol and diesel prices.
On Monday, oil prices jumped by 7%, with global benchmark Brent crude prices soar to over US$115 (£87.11) a barrel, as EU nations push for an embargo on Russian oil and gas imports after an attack on Saudi oil facilities across the UK over the weekend, affecting oil and gas output.
Data from Experian Catalist shows that on Sunday, the average cost of petrol per liter was around 163.5p, while diesel was 173.4p in the UK. According to the RAC, if Chancellor cut 5p in fuel duty it would make £3.30 cheaper for a basic family car.
FTSE 100 index gained around 0.50% as soaring oil prices boosted shares of energy majors and put pressure on UK’s fuel forecourts. Shares of energy giants Shell and BP rose over 4% and shares of miners Anglo American and Glencore soar over 6% and 3.5% higher, respectively, as London aluminium prices jumped almost 5% amid Australia’s banned exports of alumina and aluminium ores to Russia.
Last week, the International Energy Agency (IEA) said that oil demand growth will face challenges this year and warned that the global market could be may not get the supply of around 3 million barrels per day from Russia at the start of next month as sanctions take hold and buyers are avoiding Russian suppliers.
The energy agency also cut its demand forecast by 1.3 million BPD for the second to the fourth quarter of this year and added that 60 million barrels released by its members would not be sufficient to address long-term supply issues.
Let us look at five FTSE-listed oil and gas stocks, Shell, BP Plc, Diversified Energy Company Plc, Harbour Energy Plc, Tullow Oil Plc, which you may buy now after doing your research.
Shell Plc (LON: SHEL)
FTSE 100-listed global energy and petroleum company Shell Plc stands at £147,128.20 million as of 21 March 2022. The company has given a return of 35.02% to its shareholders over the last one year as of 21 March 2022, while its year-to-date return stands at 24.58%. Its earning per share stood at -2.78. Shell Plc’s shares closed trading at GBX 2,020.50, up by 4.05%, on 21 March 2022.
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BP Plc (LON: BP.)
The market cap of FTSE 100-listed global oil and company BP Plc stands at £72,989.06 million as of 21 March 2022. The company has given a return of 22.27% to its shareholders over the last one year as of 21 March 2022, while its year-to-date return stands at 13.46%. Its earning per share stood at -1.00. BP Plc’s shares closed trading at GBX 375.00, up by 4.05%, on 21 March 2022.
Diversified Energy Company Plc (LON: DEC)
The market cap of the FTSE 250-listed independent oil and gas production company stands at £977.55 million as of 21 March 2022. The company has given a return of 3.23% to its shareholders over the last one year as of 21 March 2022, while its year-to-date return stands at 10.15%. Its earning per share stood at -0.03. Diversified Energy Company Plc’s shares closed trading at GBX 115.00, up by 2.68%, on 21 March 2022.
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Harbour Energy Plc (LON: HBR)
The market cap of the FTSE 250-listed leading independent oil and gas production company; Harbour Energy Plc stands at £4,039.02 million as of 21 March 2022. The company share value has depreciated by -18.25% to its shareholders over the last one year as of 21 March 2022, while its year-to-date return stands at 23.28%. Its earning per share stood at -29.34. Harbour Energy Company Plc’s shares closed trading at GBX 436.40, up by 2.30%, on 21 March 2022.
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Tullow Oil Plc (LON: TLW)
The market cap of the FTSE 250-listed multinational oil and gas exploration company; Tullow Oil Plc stands at £751.99 million as of 21 March 2022. The company share value has depreciated by -6.79% to its shareholders over the last one year as of 21 March 2022, while its year-to-date return stands at 12.90%. Its earning per share stood at -0.87. Tullow Oil Plc’s shares closed trading at GBX 52.44, up by 4.71%, on 21 March 2022.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.