For financial professionals in Uruguay

What do higher oil prices mean for the energy sector?

Global crude prices have soared on supply worries caused by Russia’s invasion of Ukraine. The conflict is highlighting the tightness of crude stocks and persistently robust demand (short-term disruptions notwithstanding). With oil prices likely to stay high, support for energy stocks could continue, says Research Analyst Noah Barrett.

Key takeaways:

  • With Russia a top-three producer of global crude, the country’s invasion of Ukraine has created worries about a steep drop in oil supplies at a time when demand for crude continues to recover from pandemic lows.
  • Indeed, the Russia/Ukraine conflict has cast a light on the tightness of global oil supplies after years of under-investment by the energy industry. Meanwhile, demand for crude is expected to rise over the coming decade.
  • In our view, the supply/demand imbalance could keep oil prices elevated and create a positive backdrop for the energy sector, particularly exploration and production companies.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.


Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.


The information in this article does not qualify as an investment recommendation.


Marketing Communication.