The ongoing military conflict in the Middle East, exacerbated by Iran’s rejection of a U.S. peace plan, has raised concerns about oil supply disruptions, particularly through the Strait of Hormuz. As a result, analysts predict that Brent crude prices could surge to between $150 and $200 per barrel, up from approximately $107. This spike has already propelled shares of major oil and gas companies, including Chevron and Oneok, significantly higher in recent weeks.
Chevron’s stock has gained over 13% in the past month, buoyed by its strong upstream operations in North America and potential production growth in Venezuela. With a forward dividend yield of 3.5% and a commitment to returning capital to shareholders, Chevron remains an attractive option despite its premium valuation. Similarly, Oneok has seen a 13.7% increase in its share price, supported by its diverse midstream operations and a robust fee-based revenue model, offering a 4.5% forward dividend yield.
For market professionals, both Chevron and Oneok present compelling investment opportunities, particularly given their resilient business models and attractive dividend yields amid rising energy prices.
Source: fool.com