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Oil Prices Jump on Geopolitical Tensions: 3 Energy Stocks to Watch
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Key Takeaways
CVX could benefit from higher crude prices, supported by Permian growth and new assets from the Hess deal.
BP is expanding upstream production, with major projects and developments planned through 2026 and 2027.
XOM targets upstream output of 5.5M boe/d by 2030, led by low-cost assets in Guyana and the Permian Basin.
Global oil prices have rallied in the past week owing to rising geopolitical tensions in the Middle East. The escalating conflict between the U.S. and Iran has effectively blocked oil shipments through the Strait of Hormuz. The Strait of Hormuz is one of the most crucial oil chokepoints globally, according to the U.S. Energy Information Administration (EIA). In fact, approximately one-fifth of the world’s total oil and gas supply moves through the strait. Furthermore, the geopolitical situation has also prompted several oil-producing companies in the Middle East to curb their production levels.
Initially, this year, oil prices were expected to reach as low as below $55 per barrel, per data from the U.S. EIA. However, the recent conflict in the Middle East and the damage to oil production infrastructure, along with the disruption of oil supply through the Strait of Hormuz, have rattled global commodity markets, with oil prices surging to nearly $100 per barrel. The tightening of global crude oil supplies is expected to keep oil prices in the bullish territory, thereby aiding many global upstream producers, including Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . In the past month, CVX shares have risen 4.6%, while XOM has gained 0.9% and BP has increased 9.6%. All three companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Upstream Producers to Gain: CVX, BP, XOM
Chevron has an unmatched portfolio of high-quality assets in the Permian Basin that continues to drive peer-leading organic growth. Furthermore, the company has a global presence and key international assets as well, which include premium assets in Guyana, Bakken, and the Gulf of America, from the Hess acquisition in 2025. Thus, Chevron’s upstream segment should benefit from rising crude oil prices, enhancing earnings and free cash flow.
BP plc is taking significant strides towards increasing its upstream production. The company started seven major upstream projects in 2025, with several more expected to start in 2026 and 2027. BP’s upstream activities have substantial exposure to rising oil prices and are expected to support higher profits and cash flows.
ExxonMobil stands out among other industry majors due to its strong upstream presence, with more than 50% of its oil and gas production coming from high-return, advantaged assets with low production costs. These high-return assets, including its Guyana and Permian Basin resources, provide a competitive edge over other players and secure a robust production outlook as the company continues to grow total production from them. In fact, the company has mentioned that it intends to grow its upstream production to 5.5 million oil equivalent barrels per day by 2030. XOM’s advantaged assets are characterized by low break-even costs that will allow the energy giant to generate high profits and cash flows in a rising oil price environment.
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Oil Prices Jump on Geopolitical Tensions: 3 Energy Stocks to Watch
Key Takeaways
Global oil prices have rallied in the past week owing to rising geopolitical tensions in the Middle East. The escalating conflict between the U.S. and Iran has effectively blocked oil shipments through the Strait of Hormuz. The Strait of Hormuz is one of the most crucial oil chokepoints globally, according to the U.S. Energy Information Administration (EIA). In fact, approximately one-fifth of the world’s total oil and gas supply moves through the strait. Furthermore, the geopolitical situation has also prompted several oil-producing companies in the Middle East to curb their production levels.
Initially, this year, oil prices were expected to reach as low as below $55 per barrel, per data from the U.S. EIA. However, the recent conflict in the Middle East and the damage to oil production infrastructure, along with the disruption of oil supply through the Strait of Hormuz, have rattled global commodity markets, with oil prices surging to nearly $100 per barrel. The tightening of global crude oil supplies is expected to keep oil prices in the bullish territory, thereby aiding many global upstream producers, including Chevron Corporation (CVX - Free Report) , BP plc (BP - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . In the past month, CVX shares have risen 4.6%, while XOM has gained 0.9% and BP has increased 9.6%. All three companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Upstream Producers to Gain: CVX, BP, XOM
Chevron has an unmatched portfolio of high-quality assets in the Permian Basin that continues to drive peer-leading organic growth. Furthermore, the company has a global presence and key international assets as well, which include premium assets in Guyana, Bakken, and the Gulf of America, from the Hess acquisition in 2025. Thus, Chevron’s upstream segment should benefit from rising crude oil prices, enhancing earnings and free cash flow.
BP plc is taking significant strides towards increasing its upstream production. The company started seven major upstream projects in 2025, with several more expected to start in 2026 and 2027. BP’s upstream activities have substantial exposure to rising oil prices and are expected to support higher profits and cash flows.
ExxonMobil stands out among other industry majors due to its strong upstream presence, with more than 50% of its oil and gas production coming from high-return, advantaged assets with low production costs. These high-return assets, including its Guyana and Permian Basin resources, provide a competitive edge over other players and secure a robust production outlook as the company continues to grow total production from them. In fact, the company has mentioned that it intends to grow its upstream production to 5.5 million oil equivalent barrels per day by 2030. XOM’s advantaged assets are characterized by low break-even costs that will allow the energy giant to generate high profits and cash flows in a rising oil price environment.