"The oil spike is a shocker that's made big energy interesting again. With oil prices in the $100 ballpark, many top 'big oil' producers may have yet to fully price in the return of triple-digit oil."
"I wouldn't dare bet on oil's next move. Rather, I'd look to structural tailwinds (think the rise of AI and the demand for natural gas) as top factors to look for as the next phase of the oil spike plays out."
"While I wouldn't panic-buy big oil with the expectation of such, I would consider gradual buying of the large-cap energy plays that might have significant dividend increases in store for investors if triple-digit oil is here to stay for a while longer."
The Iran war has led to an oil shock, increasing pressure on broad markets, with the Nasdaq Composite in correction and S&P 500 down nearly 7%. Investors are advised to remain calm during this turbulent period. Oil prices are around $100, with potential for higher prices, making big oil producers attractive. Structural factors like AI and natural gas demand are important to consider. Gradual investment in large-cap energy plays is recommended, especially if triple-digit oil prices persist, despite the Fed not currently anticipating stagflation.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]