European and US oil companies trade higher crude oil prices on the Stock Exchange

The rise in oil prices, despite the fluctuations that almost always accompany the evolution of this raw material, is boosting oil companies on the Stock Exchange, both in Europe and in the United States. It is true that these companies started from low levels due to the falls caused by the effect of the pandemic, although the price of black gold has exceeded pre-COVID-19 prices and has returned to those set in 2018. Brent (the benchmark in Europe) has reached 76 dollars a barrel, an increase of 47% in 2021, while West Texas has risen 52% to 74 dollars a barrel.

All the major oil companies in Europe are reflecting the performance of crude oil on the Stock Exchange. Of this group, Repsol has been the best performer over the last six months. The company headed by Josu Jon Imaz has risen 34% over the year and is trading at more than 11 euros per share. The British BP has risen by 28%; the Italian ENI, 23%; the Anglo-Dutch Shell, 15%, and the French Total, 13%.

On the other side of the Atlantic, the world's leading oil company, the American Exxon Mobil, has gone from 41 dollars to 64 dollars in six months, a rise of 50%. Chevron Texaco is up 27%. However, Saudi Arabia's Aramco has been flat since the beginning of the year.

Analysts estimate that these companies still have some way to go in the coming months, with crude oil expected to reach 100 dollars a barrel in 2022. This is the projection of Bank of America, which cites three factors for this behaviour. The demand that will increase after the confinements due to the fight against the pandemic: more use of private cars compared to public transport and the recovery of tourist and business trips.

Repsol's objectives, contained in the 2021-2025 strategic plan, can be summarised as the reduction of dependence on fossil fuels. It wants to become a company with zero net emissions by 2050. And with investments of 18.3 billion euros, those earmarked for low-carbon initiatives will amount to 5.5 billion euros between 2021 and 2025, 30% of the total.

Of the latest reports from investment banks and brokerage firms on the oil company headed by Antonio Brufau, Sabadell, Alantra, Deutsche Bank and Jefferies advise buying. Bank of America- Merrill Lynch opts to be neutral on Repsol shares.