Oil stocks fall in the wake of crude oil, Eni falls back after rally

(Il Sole 24 Ore Radiocor) - Oil stocks on the Italian Stock Exchange slumped after March's super rally and their performance mirrored that of oil prices, as hopes grew for a rapid end to the war in Iran and the reopening of the Strait of Hormuz. US President Donald Trump has said that the Strait would probably be reopened as the US withdrew and that any problems would mainly affect Europe and the Gulf countries, given the limited US dependence on oil in the region. Meanwhile, according to the Wall Street Journal, the Emirates would be working on forming a coalition to ensure the reopening of the Strait even through the use of force. "Although signs of a willingness to negotiate are positive, obstacles remain before a real end to the conflict," say Ubs analysts. The resumption of energy flows "could take even longer and we note that a sudden end to the conflict, leaving the status of the Strait of Hormuz uncertain, could also keepenergy prices higher for longer," they add.

In Milan, Eni falls back after +29% since the start of the war, +26% in March and +51% since the beginning of the year. Also losing ground Tenaris after +10% in the past month and +52% since the start of the year as well as Saipem , +60% since the start of the year and +9% in the past month. I crude oil prices today fell sharply with Brent and Wti both dropping below $100 a barrel and then rising again. On the eve, by the way, there was a rollover of futures contracts to the next maturity.