The Best Oil Stocks To Own This Week

The best oil stocks to own this week are all American oil stocks.

Of course, it doesn’t take a rocket scientist to know why.

ou see, after the U.S. bombed Iran, Iran’s parliament announced that it would be completely fine with closing the Strait of Hormuz.

If you’re unfamiliar, about 20 percent of the world’s oil and gas is transported through this shipping lane.  And while only about 7% of U.S. imports are sent through the Strait of Hormuz, China, India, Japan, and South Korea rely heavily on it.  In fact, about 84% of all the oil shipped through the Strait of Hormuz is sent to Asia.  

In the absence of uninterrupted shipments through the Strait of Hormuz, the economies of these Asian countries could be severely affected.  Even if Iran decides to only temporarily close the Strait of Hormuz, the damage would still not be trivial.  And this is bullish for oil producers in the U.S.

The Best Oil Stocks to Own are in the U.S.

Despite the U.S. already being the largest producer of oil in the world, a lot of folks in this country still don’t realize we have the upper hand when it comes to oil markets.  In fact, we’re starting to hear chants of “drill, baby, drill” again.   And leading the chant is President Trump.

While you should never let emotions drive your investment decisions, you can take a cue from the emotional outbursts of others. 

It is clear that U.S. oil producers are going to get a lot of love from the Trump administration and all of Trump’s loyal followers this week.  But the reality is that domestic oil producers aren’t going to voluntarily increase production (at least in any significant way), because the higher oil prices go, the more money they make.

It’s not rocket science.   

Of course, even if U.S. producers did drastically increase production (which I don’t see happening), investors owning shares of these U.S. producers are still in an incredibly sweet position to profit from a conflict that we just exacerbated.  

To be sure, I’m not here to make any moral judgements.  I’m merely looking for opportunities for you to make a few bucks.  And indeed, U.S. oil producers continue to look very appetizing right now.  I’m particularly bullish on the U.S. oil and gas producers that are trading at significant discount, such as  …

• Civitas Resources (NYSE: CIVI)
• Chord Energy Corporation (NASDAQ: CHRD)
• Permian Resources Corporation (NYSE: PR)
• SM Energy Company (NYSE: SM)
• Matador Resources Company (NYSE: MTDR)

There’s no way to know just how long this latest conflict with Iran will play out, but you can be sure that U.S. oil producers will definitely benefit. 

Invest accordingly. 

Jeff

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