Energy industry executives continue to warn that investors are underestimating the impact of the ongoing geopolitical conflict in the Middle East.
That may be true, but it’s just another sign that investors are reacting emotionally
That’s not unusual on Wall Street and suggests that a breakthrough in the ongoing negotiations between the United States and Iran could lead to a swift decline in oil prices. What should you do to protect against this outcome? Leaning into oil prices could be a mistake If you are looking to leverage oil price moves, the best choice is likely an upstream oil and gas producer.
A solid option is Devon Energy (NYSE: DVN). The company is U.S.-based, too, so its production hasn’t been impacted by the conflict in the Middle East. It simply benefits from the higher energy prices created by the conflict.