US and Israeli investors set for North Sea bonanza amid Iran war oil price surge |
Overseas investors eye big increases in payouts by North Sea firms as Iran war fuels dramatic rises in oil and gas prices
North Sea giants have underlined how much money they are making off the UK where they are set to reap a fresh windfall following the surge in oil prices fuelled by the war on Iran.
The price of Brent crude soared above $100 per barrel yesterday leaving it trading more than $40 per barrel higher than before the US and Israel launched their attacks on Iran, which have triggered death and chaos across the Middle East.
After Qatar halted production of vital supplies of liquefied natural gas last week the country’s energy minister warned that Brent could top $150/bbl if the war drags on.
Wholesale gas prices doubled in the UK last week.
The rise in oil and gas prices means the collateral damage from the actions of US president Donald Trump and Israeli leader Benjamin Netanyahu will hit the UK economy hard.
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Motorists face steep petrol price increases. Household energy bills could rise sharply.
But City investors made clear last week that they expect some firms to be significant beneficiaries of the rise in oil and gas prices.
Shares in Israeli-owned Ithaca Energy hit a 52-week high amid expectations the company will benefit from a big increase in the profits it generates on its North Sea production.
The shares rose 4%, to 258.5p, in early trading yesterday. They sold for 222p on February 27, the day before the US and Israel launched their offensive.
Shares in North Sea heavyweight Harbour Energy sold for 296.2p yesterday morning, compared with 253.4p on February 27.
Leading shareholders in Harbour include US investment giants EIG and Blackrock.
The share price rises follow warnings from campaigners........