Oil stocks ran on the wings of crude oil. Saipem and Eni in the limelight

(Il Sole 24 Ore Radiocor)- The rise in crude oil prices, which have hit the highest in several weeks and are firmly above the $100 a barrel mark, is pushing oil stocks in Europe (the Euro Stoxx 600 is up 0.8%, one of the very few sectors to rise) and in Italia, where Saipem and Eni are trading up, in an otherwise largely negative Ftse Mib (also due to the dividend payout. The two companies, with Eni, which, among other things, finalised a USD 70 million investment to acquire 11.6% of the Canadian company Nouveau Monde Graphite (active in the market for natural graphite and advanced materials for batteries), are not affected by the coupon effect. Remaining further behind Tenaris , which was also rewarded by Bnp Paribas, which raised its price target to EUR 28.5, from EUR 21 previously. As mentioned, however, the sector is affected by the rise in crude oil, while negotiations in Iran appear to be stalled, despite pressure from US President Donald Trump, who again threatened Tehran over the weekend, stressing that 'time is running out' and that 'Iran had better act fast' to reach an agreement. Brent crude is above $110, after touching a high of $112, a level not seen since 5 May. Wti, in the $106 area, rose to $108.70, its highest level since 30 April. Both contracts posted a rise of more than 7% last week, as hopes faded for a peace agreement to end the attacks and seizures of ships along the strategic waterway of the Strait of Hormuz, which remains closed. Last week's talks between Trump and Chinese President Xi Jinping ended without any indication that the world's largest oil importer, China, would help resolve the conflict. "The closure is rapidly draining global oil supplies," say analysts at Capital Economics, pointing out that "inventories could reach critical levels by the end of June, paving the way for Brent crude prices to be between $130 and $140 a barrel, if not more." If the strait remained closed until the end of the year and oil remained around $150 per barrel until 2027, 'inflation would rise close to 10 per cent in the UK and Eurozone, driving rates back to their recent peaks and leading to a global recession,' they warned.