5 Stocks That Historically Surge When Oil Prices Spike Above $100

The global oil benchmark, Brent oil, recently topped $100 a barrel for the first time since 2022. It's the fourth time crude prices have reached the triple digits in history, with each occurrence happening in the last two decades.

Here's a look at five stocks that have historically surged when oil has spiked above $100 a barrel.

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The 2008 oil price spike

Crude oil prices topped $100 a barrel for the first time in 2008. They more than doubled from mid-2007 to mid-2008, hitting their all-time high of $147 in July 2008. While the surge in crude prices caused several oil stocks to spike, the gain was much more modest than you might expect. Here's a look at how five top energy stocks performed amid surging crude prices at the time:

Brent Crude Oil Spot Price data by YCharts

Occidental Petroleum (NYSE: OXY) delivered the highest return, exceeding 50%. That compares with much more modest gains from larger integrated energy companies, with ExxonMobil (NYSE: XOM) stock rising only 3%. Surging crude prices weighed on demand for refined petroleum products, impacting their downstream operations. Meanwhile, Canadian oil pipeline giant Enbridge (NYSE: ENB) led the way among midstream companies, as many of its peers lost value amid concerns about demand.

The shale boom

Crude prices crashed in late 2008 as the economy experienced its worst recession since the Great Depression. However, they would recover with the economy and topped $100 a barrel again in 2011. Oil remained in the triple digits through mid-2014. Higher oil prices incentivized oil companies to tap new resources, leading them to unlock oil trapped in shale through horizontal drilling and hydraulic fracturing. This shale boom unleashed a torrent of new supplies, which ultimately caused crude prices to crash in the second-half of 2014.

Oil stocks rode the wave of higher oil prices and surging production during the shale boom to deliver robust returns for shareholders:

Brent Crude Oil Spot Price data by YCharts

ConocoPhillips (NYSE: COP) led the way with a more than 130% gain. It now had untapped upside in crude prices, having spun off its downstream assets in 2012 to form Phillips 66. Strong demand growth also benefited Exxon, Chevron, and Occidental, while Enbridge continue to lead in the pipeline sector.

The 2022 Russia-Ukraine war spike

Crude prices would remain below $100 a barrel for several years. However, that change in early 2022 when Russia, one of the world's top three oil producers, invaded Ukraine. Crude topped $120 a barrel at one point before gradually declining as the supply picture improved. That surge drove a spike in oil stocks:

Brent Crude Oil Spot Price data by YCharts

Occidental led the way, more than doubling in value. Surging oil prices enabled it to generate more cash to repay debt, which had weighed on its stock preceding the spike.

Higher oil prices have historically fueled these stocks

Not all energy stocks have historically spiked with crude prices. Some have meaningfully underperformed oil due to various factors. However, Exxon, Chevron, ConocoPhillips, Occidental Petroleum, and Enbridge stand out as they've risen each time crude prices have topped $100 a barrel.

Matt DiLallo has positions in Chevron, ConocoPhillips, Enbridge, and Phillips 66. The Motley Fool has positions in and recommends Chevron, Enbridge, and Phillips 66. The Motley Fool recommends ConocoPhillips and Occidental Petroleum. The Motley Fool has a disclosure policy.