Oil Market Turmoil Creates Winners and Losers Among Energy Producers

The current turmoil in oil markets is creating winners and losers among energy producers. The US-Israel war on Iran, rising UK gilt yields, and fresh tariff pressure are reshaping inflation and borrowing costs. This has led to a widening gap between those that benefit from the situation and those that suffer.

Three oil stocks that offer direct exposure to crude price shocks are Tullow Oil (LSE:TLW), Pharos Energy (LSE:PHAR), and Jadestone Energy (AIM:JSE).

Tullow Oil, a pure upstream producer, has most of its income tied directly to crude pricing through Ghana assets. The company generated $833 million out of roughly $847 million in segment revenue. However, it faces structural decline in long-term demand due to governments' push for decarbonization and stricter emissions targets.

Pharos Energy gives pure upstream oil and gas exposure within the screener, focused on production in Vietnam and Egypt. The company is expected to move production from mere decline management to incremental volume growth from 2025, supporting higher revenue and operating cash flow.

Jadestone Energy is a pure upstream player developing and producing oil and gas across Australia, Malaysia, Indonesia, and Vietnam. It has a growing Asia Pacific footprint and aims to capitalize on the ongoing global underinvestment in upstream oil and gas.