Oil prices are just starting to gush higher, as expected.
Now up to about $74, there’s fear oil could gush to $100 should the Middle East fiasco get even worse. We also have to consider that President Biden may be supportive of a possible Israeli strike on Iranian oil. In fact, as noted by Newsweek, “When asked by a reporter if he would support Israel targeting Iran’s oil facilities, Biden responded, ‘we’re discussing that.’ This statement fueled market fears of potential disruptions to oil supplies from the region.”
We already mentioned Chevron (CVX) as an idea, and are also adding Occidental Petroleum (OXY), which is just starting to pivot higher with oil prices. Helping, Warren Buffett’s Berkshire Hathaway has been consistently buying shares on pullbacks. At the moment, the firm owns 27.3% of OXY and could buy even more moving forward.