Energy Stocks Tied to Oil Prices See Shift in Risk Costs Amid Rising Rates

Energy prices are rising again, and the Federal Reserve has increased interest rates for the first time since 2023. This shift is causing investors to reevaluate risk costs in various sectors. While higher borrowing expenses can squeeze some industries, energy producers tied to oil and gas prices may see a mix of pressures and opportunities.

Three stocks highlighted by Simply Wall St are NG Energy International (TSX:GASX), Vietnam National Petroleum Group (HOSE:PLX), and Seadrill (SDRL). These companies provide direct exposure to commodity price moves, with revenue tied closely to energy prices. For instance, NG Energy International offers pure exposure to Colombian natural gas, with a recent P/E of 7.5x and market cap of CA$314 million.

Vietnam National Petroleum Group is another major fuel supplier that imports, exports, and trades petroleum products across Vietnam and overseas. Its revenue comes mainly from petroleum segments worth roughly ₫469.8t. With a market cap of ₫47.5t, the company provides direct exposure to oil price cycles through fuel trading, distribution, and refining-linked products.

Seadrill runs a global fleet of offshore drilling rigs that help oil and gas producers tap deepwater reserves when higher prices justify exploration. The business generates about US$1.5b from contract drilling, mainly in Brazil, Angola, and the United States. With a market cap of US$3.0b, Seadrill matters for investors looking to link their portfolios to sustained oil prices.