Friday, September 25, 2026
As I write this (a week before publication), stocks have been falling as crude oil and the 10-year Treasury yield ratchet higher. Let’s take a look at what is going on in the markets. As I write this, WTI crude oil is at $103 per barrel, up from $70 on July 1. Continued disruptions to […]
The universe of ETFs that use option strategies to generate income and pay very attractive distribution yields is heavily invested into technology stocks these days. Precious metals and cryptocurrencies are also well represented. One asset class that has been poorly represented in these types of ETFs is energy. That remains the case, but I want […]
Energy stocks posted strong share price gains as crude oil soared after the closure of the Strait of Hormuz. From late February to early April, crude oil futures went from $65 per barrel to a peak of $115 per barrel. Since mid-May, oil has fallen from $108 to a current $73 per barrel. Energy stocks […]
The closure of the Strait of Hormuz, which makes Persian Gulf crude oil and energy products effectively inaccessible, has resulted in many countries imposing fuel rationing. The decreased access to fuel also means refiners will have to start making decisions about what sorts of fuel they prioritize in their refining. Jet fuel has a unique […]
Crude oil is produced in many parts of the world, but the easy-to-find, low-cost Persian Gulf oil has enabled that region to capture 20% of the global oil market. And the war against Iran has shone a light on the Strait of Hormuz as a choke point that could cut off a large share of […]
As I write this on March 30, the price of WTI crude oil has topped $100 per barrel. Brent crude trades at $114 per barrel. Oil was trading at $55 to $60 at the start of 2026, so it has nearly doubled. Oil prices will likely remain elevated as long as shipping through the Strait […]
In late December and early January, WTI crude oil traded around $55 per barrel. The war against Iran sent oil into a parabolic rise. As I write this, WTI oil is trading for $95 a barrel—up 70% from where the prices were at the start of the year. The primary cause of the price increase […]
Pure-play energy refiners receive little investor attention. When people think about energy stocks, they usually think of large, global, full-spectrum players like Exxon Mobil (XOM) and Chevron (CVX); however, income-focused investors are aware of midstream companies with attractive yields and growing dividends. Refining companies, which turn crude oil into fuels, are referred to as downstream […]
When I learned about the business operations of refining companies a decade ago, I became a fan of the sector and the long-term profit rewards that investors can earn from it. The energy sector is divided into three subsectors. Upstream energy companies drill for oil and gas. These companies receive a lot of attention because […]
There is a widespread belief that renewable energy sources are replacing traditional hydrocarbon energy sources. That is not the case. Here is the global crude oil demand for the last 20 years. Consumption has grown from 83.65 million barrels per day (mbpd) in 2005 to a forecast of 105.5 mbpd for 2025. The use of […]
