Three Stock Ideas with Huge Upside to Higher Oil Prices
Oil prices are surging - it is timely to revisit Bison Insights ideas with the most upside from higher oil prices.
Since the outbreak of war in the Middle East and Iran’s declaration that the Strait of Hormuz is closed, oil prices have surged while energy equities have lagged the rally:
This lag suggests that equities are not yet fully pricing in the increase in oil prices. Meanwhile, oil itself is trading with extreme volatility as the market constantly reprices how long the Strait may remain closed and how large the resulting supply shortfall may be. In a market that clears at the margin, even a temporary disruption of this size can cause very large price swings:
In this kind of environment, it makes sense to analyze oil equities across a range of higher price scenarios, especially with the large supply disruption and uncertainty around how long the disruption may last.
Since launching Bison Insights, the twelve investment ideas I’ve published have performed very well both in absolute terms and relative to the broader energy index:
In this article, I look at what the oil-exposed ideas could be worth in higher oil-price scenarios, and how much upside still remains if oil stays elevated for longer than the market currently expects.
Disclaimer: This is for informational and educational purposes only. This is not an offer, solicitation, or investment recommendation. Please consult an advisor and do your own diligence. Past performance may not be indicative.
