Viva Energy Group Ltd's stock surged 6.77% during Monday's trading session.

The rally follows a report from brokerage Jefferies expecting strong first-quarter performance for Australian fuel refiners, including Viva Energy. Jefferies cited benefits from the Middle East conflict, which is expected to drive fuel stockpiling by consumers and commercial customers, leading to strong volume growth. The firm also noted market share gains from increased volumes with independent service stations and distributors, along with modest improvements in retail margins providing scope for upside.

Jefferies has set a price target of A$2.20 on Viva Energy with a "hold" rating. Year-to-date, Viva Energy's stock was up 22.4% as of the last close prior to this movement.