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Bloomberg
European oil majors are erasing their pandemic slump as tensions between Russia and the West drive Brent crude above $92 a barrel.
The Stoxx Europe 600 energy sub-index is outperforming all other sectors on Friday as crude heads for its seventh week of gains. Shell Plc, BP Plc and TotalEnergies SE led the rally, and the companies have now either erased their pandemic losses entirely or are close to doing so.
Energy stocks have had the best returns in Europe so far in 2022 and strategists are bullish on a sector that underperformed in the past three years. A tight market and tensions around Ukraine have sent crude prices soaring. Now, investors are looking to earnings and guidance from the biggest companies to see where the stocks go from here.
“Energy stocks are an attractive diversifier as the sector remains absolute and relative cheap with ongoing earnings upgrades,†said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg.