Investor_NICK
Biotech & Technology Investor
US energy stocks remain the trade because the Iran war keeps hitting oil supply; it is not a dip-buying chance in tech. Iran struck more Persian Gulf energy sites, including the Fujairah bypass route, erasing Monday's relief rally and lifting Brent back above $104. Hormuz is still contested, tanker insurance stays high, and the IEA's record 400 million-barrel release did not stop the climb. Chevron, Marathon Petroleum, Valero, Occidental and Phillips 66 held green as stock futures fell. x.com … Show more
Crude oil and the XLE energy-sector ETF would be buys on a pullback because uncertainty over a real military strike could hang over the US market from the midterms through year-end. Only an actual strike or a true peace deal would settle that uncertainty. x.comÂ
Money is rotating from big refiners and integrated oil companies into oil drilling and servicing firms. The move could be in its early innings, and the recent drilling gains alongside refiner losses are working in that direction. x.comÂ
Energy stocks enter the week bullish after the president announced a great oil deal and crude gapped up, a move worth noting for its future impact. The view covers broad energy and exploration-and-production funds, refiners Marathon Petroleum, PBF Energy and Valero, drillers Transocean, Helmerich & Payne and Valaris, and service companies NESR and SLB. x.comÂ
US energy stocks are being steadily accumulated after a 17-year base, and that base will not resolve in a month. The sector broke out this year and pulled back on contracting volume, which is digestion, not distribution. Energy trades near 13x earnings versus about 20x for hyperscalers. Stocks now rise with oil and get bought back when oil falls. Tech is priced for the cost of capital to come down; energy for the reason it will not. x.com x.com x.comÂ
Refiners such as Valero and Marathon Petroleum may be nearing a top, because the cure for high prices is always high prices. The stocks have made monster moves as crack spreads blow out and foreign buyers fight for distillate capacity. x.comÂ
US energy stocks stand to benefit from the Strait of Hormuz closure. With Hormuz closed, energy stocks are open for business. x.comÂ
Refiners Marathon Petroleum, Valero and Phillips 66 are back at the top of S&P 500 momentum rankings as earnings surge. The three earned a combined $12.6 billion in Q2, the most since Russia invaded Ukraine in 2022, with Marathon and Valero scoring 100 on momentum and Phillips 66 scoring 99. x.comÂ
US energy stocks face pressure as the US-Iran memorandum of understanding reopens the Strait of Hormuz and lifts the US naval blockade. WTI broke below $80 from near $87 and could head toward $70, as oil, Treasury yields and the dollar broke lower together. Energy was the hardest-hit sector, while airlines rallied on relief from fuel costs. Lower oil eases inflation expectations, with headline CPI at 4.2% but core only 2.9%, removing pressure for Fed hikes. x.com x.comÂ
The energy sector is the trade as an energy crisis builds. Brent crude is holding near $109 a barrel, up from $105 on Friday, the EU has warned of a long-lasting energy crisis, UK diesel has crossed 100 pounds per fill-up and U.S. gasoline is above $4.10 a gallon. Trump has given Iran a 48-hour ultimatum to reopen the Strait of Hormuz or face infrastructure destruction, and markets are pricing in escalation risk. x.comÂ