Rising crude oil prices boost oil company prices on the stock market

Shares of publicly traded oil companies saw a boost last week, impacted by rising international oil prices following the Middle East attacks.

Shares of Norwegian oil company Equinor gained the most, up 13.17% to 273.30 Norwegian kroner, followed by ConocoPhillips, a company dedicated to the exploration and production of oil and natural gas, up 11.17% to $96.96 per share.

Other firms that benefited from the rise in crude oil prices included Brazilian energy company Petrobras, which rose 10.80% to 34.98 Brazilian reais, and Chinese oil and gas company Petrochina, which rose 8.19% to HK$7.40.

Following this list is the Colombian company Ecopetrol, which rose 7.59% to 1,985 Colombian pesos, while Exxon Mobil, the US oil and gas producer, gained 7.53% to $112.12 per unit.

Israel's attack on Iran has pushed up crude oil prices, as the Middle East produces about a third of the world's oil, and a larger conflict could restrict this supply.

Banorte analysts highlighted in a statement that the week was marked by increased risk aversion following the intensification of geopolitical tensions in the Middle East.

"Israel's attack on Iran (and Iran's response) has heightened concerns about an escalation into a wider war," they noted.

They also explained that the region produces around a third of the global crude oil supply. "In this regard, safe-haven assets and those correlated with energy benefited."

"Oil markets have been alarmed by reports of Israeli attacks on Iran's nuclear and ballistic missile infrastructure," Barclays analysts noted in a study.

Despite the approximately $10 per barrel increase in prices over the past few days, "in our view, the worst-case scenario is far from being the price," they explained.

Gabriela Siller, director of analysis for Banco Base, stated in a study that maritime risks in the Persian Gulf, the Gulf of Oman, and the Strait of Hormuz are likely to increase.

"It's worth noting that approximately 20 million barrels of oil pass through the Strait of Hormuz, representing nearly 20% of the world's oil," the article reads.

Crude oil prices rise

Oil prices rose more than 10% last week, marking their largest weekly increase since July 2022, due to increased risk aversion following heightened geopolitical tensions in the Middle East.

The escalation in the Middle East, a crucial region for crude oil production, adds uncertainty and volatility to its price, which has yet to end with the impact of the dispute between Donald Trump and China over tariff policy.

Brent crude futures rose 7.02% to $74.23 a barrel on Friday, after having climbed more than 13% to an intraday high of $78.50.

U.S. West Texas Intermediate crude rose 7.26% to $72.98, after gaining 14% to $77.62 on Friday. The price of the Mexican export blend climbed 7.52% to $67.94 a barrel.

In their weekly comparison, Brent rose 11.67% and WTI advanced 13.01%, both posting their largest gain since October 7, 2022, gaining 16.54% and 15.05%, respectively.

In the case of the Mexican export mix, its gain was 13.20%, making it its sharpest increase since the week ending March 4, 2022, when it climbed 23.88%.

In 2025, WTI is expected to rise 3.99%, Mexican crude 2.57%, while Brent crude is expected to fall 0.55%.

"Operators decided to seek refuge in lower-risk assets in the face of geopolitical tensions in the Middle East and the widespread strengthening of the dollar," CIBanco experts stated in a study.

They added that fears of further escalation of the conflict between Israel and Iran have led markets to take positions in so-called safe-haven assets.

Safe-haven assets and those correlated with energy benefited.

The dollar regained ground, suggesting that the recent decline is temporary rather than structural, experts agreed.

Gold rallied 3.49% to $3,451.09 per ounce, reaching record levels last week on risk aversion.