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Bloomberg: European Energy Stocks Gain on Record Oil Price; BP, Shell Rise

Bloomberg: European Energy Stocks Gain on Record Oil Price; BP, Shell Rise

“The price of oil has risen 39 percent this year amid concern supplies may not meet demand.”

Aug. 3 (Bloomberg) — European oil stocks including BP Plc and Shell Transport & Trading Co. gained as oil futures reached a record in New York. Royal Bank of Scotland Group Plc led banks lower after its earnings didn’t beat estimates.

The price of oil has risen 39 percent this year amid concern supplies may not meet demand. The energy group in the Dow Jones Stoxx 600 Index has gained 13 percent this year, compared with a 3.2 percent gain for the broader benchmark, as the higher cost of crude boosted the industry’s outlook.

“As long as crude oil remains above $30, it’s all benefits for oil companies,” said Robert Gobin, a fund manager at Tocqueville Finance in Paris, with $1.2 billion in European stocks under management. “I wouldn’t sell stocks in this industry.” He has shares of Total SA.

The Stoxx 50 Index climbed 0.3 percent to 2655.90 at 4:31 p.m. in London, for its fifth day of gains in six. The Stoxx 600 advanced 0.2 percent as about three stocks rose for every two that fell. The Euro Stoxx 50, a measure for the 12 countries using the euro, added 0.6 percent.

Stocks pared some of their gains after a government report showed that consumer spending in the U.S. fell in June for the first time in nine months as auto sales declined and income growth slowed.

Crude for September delivery climbed to a record of $44.24 a barrel in overnight electronic trading on the New York Mercantile Exchange after the Organization of Petroleum Exporting Countries said it may not be able to raise production fast enough to curb oil prices.

Shares of BP, Europe’s biggest oil company, gained 1.8 percent to 521.25 pence, their highest in almost two years.

Shell, which has a 40 percent stake in Royal Dutch/Shell Group, Europe’s second-largest oil company, climbed 2.5 percent to 408.75 pence. Royal Dutch Petroleum Co., which owns the rest, gained 1.7 percent to 42.09 euros. Total, Europe’s biggest oil refiner, gained 1.8 percent to 162.70 euros.

To contact the reporter on this story:

Brian McGee in London at [email protected].

To contact the editor responsible for this story:

Daniel Tilles at  [email protected].

http://quote.bloomberg.com/apps/news?pid=10000085&sid=aci.wHjx_v0I&refer=europe

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