Five Oil and Gas Stocks Ready for a Hormuz Spike and a Hawkish Fed
Critical Data For India’s Largest Nuclear Plant Exposed In Massive Breach What I Cover My focus spans the global energy landscape and the technologies reshaping it, specifically focusing on oil and gas, renewables, and tech-driven market… Two shocks are hitting energy investors at once, and they point in opposite directions.
Iran’s Revolutionary Guard declared the Strait of Hormuz closed again on July 11, the U.S.
answered with three straight nights of strikes, and roughly a fifth of the world’s seaborne oil trade is once more moving in a trickle or not at all.
Brent punched back above $86 this week, a one-month high, and crude is up around 40 percent since January.
bombing has not broken Tehran’s grip on the waterway, and nobody on a trading desk is betting it will this week.
The second shock is quieter, and it is coming from the bond market.
The same supply fear that lifted oil pushed the 2-year Treasury yield to a 16-month high, because higher energy prices mean stickier inflation, and stickier inflation means the Federal Reserve under new chair Kevin Warsh is in no mood to cut.
A cooler June inflation print took some steam out of the July hike bet, but markets still lean toward at least one rate increase before year-end.
Warsh has said he wants to make the last five years of inflation “a thing of the past.” Read that as…money is not getting cheaper.
SetOilPrice.comas a preferred source in Googlehere.
You want companies levered to the crude surge.
You also want companies that do not need a friendly credit market to survive, because they might not get one.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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