Global oil benchmark Brent crude recently topped $100 a barrel for the first time since 2022. This is the fourth time in history that crude oil prices have reached triple digits, each of which has occurred in the past two decades.
Here are five stocks that have historically risen when oil prices soared above $100 a barrel.
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In 2008, crude oil prices exceeded US$100 per barrel for the first time. Crude oil prices more than doubled from mid-2007 to mid-2008, reaching a record high of $147 in July 2008. oil stocks To soar, the gains are much smaller than you might think. Let’s take a look at five ways Top Energy Stocks Doing so at a time when crude oil prices were surging:
occidental petroleum corp. (NYSE:OXY) The rate of return is the highest, over 50%. By comparison, earnings for large integrated energy companies are much smaller, Exxon Mobil (NYSE: XOM) Shares rose just 3%. The surge in crude oil prices has suppressed demand for refined oil products and affected downstream businesses. Meanwhile, Canadian oil pipeline giant ambridge (NYSE: ENB) Leading the way among midstream companies as many peers lose value due to concerns about demand.
In late 2008, crude oil prices plummeted as the economy went through its worst recession since the Great Depression. However, as the economy recovered, oil prices once again exceeded US$100 per barrel in 2011. By mid-2014, oil prices remained in triple digits. Rising oil prices have incentivized oil companies to develop new resources, leading them to extract oil from shale through horizontal drilling and hydraulic fracturing. The shale oil boom unleashed a flood of new supply, ultimately causing crude oil prices to plummet in the second half of 2014.
Oil stocks rode the wave of rising oil prices and surging production during the shale oil boom, delivering strong returns for shareholders:
ConocoPhillips (NYSE:COP) Leading the way with an increase of more than 130%. In 2012, the company divested its downstream assets and established Phillips 66. Strong demand growth also benefits ExxonMobil, Chevronand Occidental Petroleum Corp., while Enbridge continues to lead in pipelines.
Crude oil prices will remain below $100 per barrel for several years. However, this changed in early 2022, when Russia, one of the world’s three largest oil producers, invaded Ukraine. Crude oil briefly topped $120 a barrel before gradually falling as supply conditions improved. This surge has fueled a surge in oil inventories:
