Are we in for an Oil Shock?
Editor’s Note: We’re pumped for today.
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As the trading week kicks off, we have a few sectors we’re watching this week.
President Donald Trump has been mulling over whether the United States will attack Iran in the near future.
If the U.S. enters the fray, then the energy sector is one we’ll be watching.
As of this writing on Friday, oil prices were up 3%.
And if the U.S. starts attacking Iran tankers and energy infrastructure, then this could lead to another spike in prices.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels of crude oil per day.
About 18 million bpd of oil and oil products move through the Strait of Hormuz (along Iran’s southern coast) and there is widespread concern the fighting could disrupt trade flows.
The defense sector is also likely to be greatly affected by a U.S. war entry, and we’ve already mentioned plays like DFEN and Raytheon in the watchlist.
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