2 FTSE oil stocks you can buy now

Crude oil prices hit multi-year highs, levels last seen in 2014, after Yemen’s Houthi group attacked the United Arab Emirates (UAE), raising concerns about possible disruptions of supply.

Tighter supply was another factor supporting higher oil prices amid easing concerns about Omicron’s impact on demand.

Brent and WTI both hit their highest levels since October 2014. March 2022 Brent oil futures jumped more than 1.17% to $87.47 on Jan 18, 2022 at 09:30 BST . While WTI oil futures as of March 22 were at $84.61, up 1.57%.

Houthi fighters launched missile and drone attacks which caused fuel tankers to explode and killed 3 people while several others were injured. The UAE has said it has the right to respond to such attacks. The UAE is the 3rd largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) and is the 7and world’s largest oil producer.

Given this development, let’s take a look at 2 stocks listed on the FTSE 100 index in the oil and gas sector and explore their investment opportunities:

  1. Royal Dutch Shell PLC (LON: RDSA)

Royal Dutch Shell is an oil supermajor.

Based on the group’s simplification timetable, FTSE Russell estimates that January 28 will be the last trading day for the group’s A and B shares.

From January 31, Royal Dutch Shell PLC is expected to start trading under the simplified Shell PLC, with A-shares continuing to trade on the FTSE Russell indices, while B-shares will be removed.

Image source: Refinitiv

The group’s shares were trading at 1,853.60 GBX, up 0.59% on January 18 at 10:06 a.m. BST, while the FTSE 100 index was at 7,544.20, down 0, 88%.

The company’s market capitalization was £75,577.64 million, and it has a year-to-date return of 24.88%.

Related Reading: Shell (RDSA) & Cairn Energy (CNE): 2 Energy Stocks to Buy

  1. BP PLC (LON: BP)

BP is a British oil and gas giant.

BP and a German utility company EnBW have won the lease option to develop an offshore wind project based in Scotland. The two companies will develop the 2.9 GW project in the E1 area after securing a lease option under the Scotwind lease round.

    BP share price and volume

Image source: Refinitiv

The group’s shares were trading at 396.30 GBX, up 0.65% on January 18 at 10:16 BST, while the fossil fuel sector index was at 6,656.39, up 0.69%.

The company’s market capitalization was £77,650.81 million, and it has a year-to-date return of 31.05%.


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Felix J. Dixon