FRANKFURT (DEUTSCHE-BOERSE AG) - The oil and gas sector has emerged as a clear winner this year, buoyed by skyrocketing energy prices. Beyond the industry giants, mid- and small-cap European players are also drawing significant investor interest.
April 2, 2026. FRANKFURT (Deutsche Börse). The conflict in Iran continues to dictate the direction of international equity markets. "The closure of the vital Strait of Hormuz is currently the decisive factor for both oil and stock markets," explains Marc Richter, an equity trader at Steubing AG.
While broader equity markets are reeling from the war and elevated energy costs, oil and gas majors are reaping the benefits. Their performance this year has been almost exclusively upward. Exxon Mobil (US30231G1022) has climbed from 103 to 143 euros since the start of the year, while Chevron (US1667641005) rose from 128 to 176 euros. Shell (GB00BP6MXD84), TotalEnergies (FR0000120271), ConocoPhillips (US20825C1045), and OMV (AT0000743059) have also posted strong gains, alongside oil service providers such as Halliburton (US4062161017). "Demand for oil and LNG stocks has been enormous," Richter notes. Some companies are benefiting directly from crude prices, while others are seeing indirect gains through increased demand for resource infrastructure.
Gains of 44 percent.
The oil and gas sector has been the top-performing industry since the beginning of the year, according to data from the ETF platform justETF. The first 15 spots on the top 50 industry list are occupied by oil, gas, or energy indices. Leading the pack is the MarketVector US Listed Oil Services 10% Capped index. This index, which tracks US oil service providers and serves as the benchmark for the large VanEck Oil Services ETF (IE000NXF88S1), has surged 44 percent year-to-date. European energy majors are also trending higher, with the MSCI Europe Energy 20/35 Capped index posting a 38 percent gain.
Oil price forecasts: High, but not extreme
The outlook remains heavily dependent on oil and gas prices. Should crude prices retreat, the sector could quickly come under pressure, as seen briefly in recent days. "Volatility remains high, and a 'wait-and-see' attitude among investors is palpable," Richter observes. Goldman Sachs recently revised its oil price forecast for the year upward. The US investment bank now expects Brent to average 85 US dollars, up from its previous estimate of 77 US dollars, with a short-term spike to 110 US dollars possible. It is currently trading at 108 US dollars.
LBBW has also raised its projections but does not anticipate sustained high prices. "We now expect a barrel of Brent to cost 70 US dollars by year-end," explains Chief Economist Moritz Kraemer. By mid-2027, the price is expected to drop to 65 US dollars. "The primary reason is the expectation that the war will not drag on for much longer," he explains. On one hand, Iran's military potential is likely significantly diminished following massive bombardments. "But more importantly, Donald Trump wants to declare victory as soon as possible."
"Demand for LNG transport capacity"
Steubing trader Richter has noticed that many investors are looking for alternatives to the oil majors. "Investors are specifically seeking European solutions to reduce political risk in their portfolios," he explains. One example is Norway's Awilco LNG (NO0010607971), which specializes in the transport of liquefied natural gas. "On a year-on-year basis, Awilco has gained nearly 50 percent, though it remains volatile," Richter notes. The stock was trading at 0.28 euros on the Frankfurt Stock Exchange on Thursday morning, returning to its year-opening level after peaking at nearly 0.48 euros earlier this year. "For investors, the stock is currently attractive primarily within the context of geopolitical tensions. Rising energy prices and uncertainties in global gas supply could drive demand for LNG transport capacity."
OMV Petrom: "A strategic role in Europe's energy security"
Another example is OMV Petrom (ROSNPPACNOR9). The largest oil and gas company in Southeast Europe is based in Romania and is majority-owned by the Austrian OMV Group. "OMV Petrom is characterized by a stable upward trend," Richter remarks. The share price has risen from 0.13 to 0.21 euros over the past twelve months. "The dividend yield stands at 4.5 percent," he adds. The company produces oil in the Black Sea, among other locations, allowing investors to benefit from structural growth in the regional energy market and its strategic role in European security of supply.
By Anna-Maria Borse, April 2, 2026 © Deutsche Börse AG
(Deutsche Börse AG is solely responsible for the content of this column. The articles do not constitute an invitation to buy or sell securities or other assets.)
