Stock market: oil rises benefit oil stocks

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Values ​​related to the oil sector fuel the stock market on Tuesday, April 23. Main catalyst for the sector, the sharp rise in the price of black gold, which returns to its highest since October 2018.

CGG, Vallourec, TechnipFMC and even Total are at the party today on the markets. In question, the US willingness to cancel, in early May, the exemptions granted to several countries for the import of Iranian oil.

Black gold is now rising in the markets, returning to its highs in October 2018. As the mid-session approaches, the Brent barrel of the North Sea reaches $ 75, at most high for 6 months. Ditto for the American WTI flirting with the threshold of $ 66.

Hardened US sanctions

This is a statement from the White House that has fueled the rise of the courts. Since last November and the return of US sanctions on Iran, exemptions allowed eight countries to continue buying oil from the Islamic Republic: China, India, Turkey, Japan, South Korea, Taiwan , Italy and Greece. But Washington is now setting the tone: these countries will also expose themselves to sanctions if they continue to buy Iranian crude. And to get the message across, Secretary of State Mike Pompeo added that "no grace period" will be given to countries that have benefited so far from Iranian exports.

Immediate effect therefore on oil prices, although analysts say that Saudi Arabia should offset the decline in supply by exporting more crude. The fact remains that since the beginning of the year, the trend is clearly bullish on Brent which is 37.6% while WTI wins 44.65%

Featured Oil Services

This price rebound serves as a catalyst for the sector. The major oil Total holds a third consecutive session in the green and thus wins 1.63% to 51.12 euros at midday.

On the SBF 120, oil services values ​​are on the rise. This is notably the case for CGG which jumped from 6.3% to 1.77 euro. Vallourec, whose share price has rebounded 48.4% since the beginning of the year, has increased by more than 3% to € 2.41.

In the CAC40 index, TechnipFMC leads the race, with a gain of 3.22% to 22.45 euros. In addition to taking advantage of the powerline on oil, the oil engineering group has won a $ 75 million contract from US oil giant ConocoPhillips for the supply of equipment for an oil field located in the Norwegian oil and gas sector. North Sea.

Florentine Loiseau (redaction@boursorama.fr)

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