Article / 06 November 2014 at 12:30 GMT

Equity traders betting on oil bounce

Head of Equity Strategy / Saxo Bank
  • European equities quiet ahead of ECB conference
  • Energy stocks jump on Brent crude bounce
  • Lundin Petroleum shares climb 5.4% on sector-wide advance

By Peter Garnry

European equities are flat ahead of the European Central Bank press conference, with the energy sector up 1.2% extending the gains (and the rebound in energy stocks) seen in yesterday's US session. The driver was the sharp rebound in Brent crude, which climbed from $82.30 to $85 in eight hours (see chart).

Brent Crude intraday prices since November 3
Brent crude price
Source: Bloomberg

Brent crude has since retraced a bit and is trading around the $83.50 level. The strong bids from yesterday, however, may have caused equity traders to bet on a near-term rebound in oil prices as energy stocks are up significantly across the board.

In Europe, energy stocks such as Total (+1.2%), BG Group (+1.6%), Eni (+1%), Royal Dutch Shell (+0.2%), Tullow Oil (+3.1%), and Lundin Petroleum (+5.4%) are leading this sector's surge. 

Lundin Petroleum share price over the past year
Lundin Petroleum share price
Source: Saxo Bank 

-- Edited by Michael McKenna

Peter Garnry is head of equities at Saxo Bank. Follow Peter or comment below to engage with's social trading platform.
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