Geopolitics took a complete U-turn during the Weekend after the Israel-Iran-US conflict, and Crude prices surged sharply on Monday’s opening bell, making the focus fall on oil stocks. WTI Futures touched $73, climbing 6 points and 9% in the indices. The surge in value comes after a period of stagnation for close to a year. Market commentators even predict prices could reach $100 if the conflict does not ease.
2 US Oil Stocks in Focus on Monday
ExxonMobil (NYSE: XOM)
ExxonMobil is among the top two oil stocks that stand to benefit from the Israel-Iran conflict. Escalation of the war leads to a constraint in supply as the company’s operations span major developments in Guyana and the Permian Basin. They deliver over 4 million barrels of oil per day, boasting of a heavy-production module. It is estimated that an increase of $10 per barrel can add billions to its revenues. The stock’s price is currently trading at $152 and could surge on Monday due to the crisis.
Also Read: Iran US War: What To Expect From Stock Market This Week?
Chevron (NYSE: CVX)
Chevron stock dominates the oil sector in the US and remains an influential pick in the markets. What makes it compelling is that the company boasts of a diverse global portfolio. This includes low-cost to high-cost shipments from the Permian Basin with a track record of disciplined spending. The conflict’s impact on Iranian output amplifies Chevron’s prospects, which could lead to the oil firm’s stock price surging.
In addition, Chevron’s balance sheet remains resilient with a focus on effective production and shipment. However, war-driven risk comes with the probability of a major downturn too. It is best to invest in oil stocks when tensions are high and take profits. After the situation calms down, chances of the prices heading south remain higher. Investors are advised to initiate quick trades and book profits when prices surge.