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Market Outlook

Today's Market

Summary

Chevron, Exxon Mobil and ConocoPhillips are poised to benefit from unprecedented Middle East oil and gas disruptions.

I expect Brent to reach $150–$200/bbl due to the Strait of Hormuz closure, depleted reserves, and double-demand catalysts.

The Big-3's secure, diversified oil and LNG assets outside the Middle East position them for outsized profits as global supply tightens.

All the "Big-3" American oil companies are buys due to their secure oil and gas production combined with what will likely be the biggest bull market in oil of our lives.

Of the three, I favor Chevron for its consistent and strong dividend growth, for putting a priority on dividends over share buybacks (unlike Exxon and Conoco), and for the 3.92% yield.

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I've been very surprised that the response in the price of oil has been relatively muted (in my opinion) given what has arguably been the largest disruption and destruction of oil and gas assets…