"The U.S. is the biggest producer in the world, and our supplies are not bottlenecked. So [American producers'] financial results are absolutely going to benefit from this. That's a lot different than if you're in the Middle East with production that can't move."
"The stock values of American energy companies contrast with the deflated values of the Dow Jones Industrial Average and the S&P 500, down 5% and 2%, respectively, in a month. Talk of both inflation and so-called stagflation are mounting again as the war drags on."
"The U.S. and other countries are rolling out record levels of emergency, reserve oil barrels, but those will take months to slowly release while the world is without 20% of its daily oil and LNG supplies trapped within the bottlenecked Strait of Hormuz next to Iran."
Global oil prices have surged to $100 per barrel, the highest level since Russia's invasion of Ukraine, driving American Big Oil stocks up approximately 30% this year. Major beneficiaries include Exxon, LNG exporters Cheniere Energy and Venture Global, and refiners like Valero Energy, Marathon Petroleum, and Phillips 66. Liquefied natural gas prices and refining profit margins have also skyrocketed. U.S. gasoline prices exceed $3.60 per gallon, up 32% since January, while Asian nations face severe fuel shortages due to their dependence on Middle Eastern oil and Qatari LNG. The Strait of Hormuz bottleneck has trapped approximately 20% of global daily oil and LNG supplies. American energy companies benefit from unobstructed supply chains, contrasting with Middle Eastern producers facing distribution constraints. U.S. crude oil prices have increased 70% since the year's beginning.
Read at Fortune
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