Blog: You, us, everyone

The energy sector, particularly oil, remains a strategic cornerstone of the global economy. Major oil companies (ExxonMobil, Chevron, BP, Shell, TotalEnergies) and independent producers operate in an environment heavily influenced by geopolitical tensions and global supply-demand dynamics. These companies play a key role in energy security while gradually transitioning toward natural gas and renewable energy sources.

Current Economic Environment

Oil prices are currently volatile, reflecting uncertainty around the conflict in Ukraine:

• Brent at $67.60 and WTI at $63.50, rebounding due to declining U.S. inventories and strong seasonal demand.

• Initial optimism about a potential dialogue between Zelensky and Putin has been dampened by recent Russian strikes, pushing a ceasefire further away.

• Markets remain concerned about tighter sanctions on Russian oil, while the U.S. position remains unclear.

Looking at the medium term, analysts anticipate a gradual decline in prices:

• DOE (EIA) forecasts Brent around $50 by early 2026, with WTI close to $50–56.

• S&P Global Commodity Insights and Goldman Sachs foresee a potential supply surplus, with WTI potentially dropping below $40 in extreme scenarios.

Investment Recommendation

Despite volatility, the oil sector offers strategic appeal for investors:

• Integrated majors show resilience to inflation and maintain strong margins at current oil prices.

• The sector’s defensive profile is reinforced by the global demand structure.

• Companies are increasingly investing in gas and renewables, providing long-term diversification.

• Current oil price fluctuations may present a buying opportunity for patient investors.

👉 Recommendation: Consider owning shares in large integrated oil companies (TotalEnergies, ExxonMobil, BP) to benefit from attractive yields, inflation protection, and exposure to the resilience of the energy market amid geopolitical uncertainty.