Oil Prices Just Crossed $100 Again. Here's What Energy Investors Should Do Next.

2 hours ago 3

Brett Schafer, The Motley Fool

Sat, May 2, 2026 astatine 1:08 PM CDT 4 min read

The existent daze to energy markets is lasting overmuch longer than expected. The United States is tussling with Iran -- some physically and done negotiations -- to enactment retired the concern successful the Strait of Hormuz and support vigor products flowing to the planetary economy. Both countries person disrupted the travel of lipid to effort to summation leverage successful the conflict, with Iran enacting chaos successful the Strait of Hormuz and the United States blockading Iranian ports successful retaliation.

In response, crude lipid futures person reached $105 per tube for West Texas Intermediate, portion Brent prices person reached $126 per barrel, adjacent to a grounds high. In response, lipid producers successful the United States and successful unaffected areas person begun pumping much crude from the ground.

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Here's what lipid implicit $100 a tube means for vigor stocks, and what investors should bash now.

Several $10, $5, and $1 bills stuffed into a state tank.

More American accumulation

The large takeaway from this warfare is that vigor companies privation to physique proviso extracurricular the Persian Gulf, a hotbed of conflict. This chiefly means successful North and South America, including the United States, Venezuela, Colombia, and Brazil.

These assets are acceptable to payment from rising lipid prices and are not affected by the existent conflict, but volition besides apt spot much concern to diversify distant from the Persian Gulf successful the years ahead. Not lone volition the terms per tube rise, but the proviso coming from the Americas whitethorn emergence arsenic well. The Trump medication says it is successful discussions with lipid companies to summation output and buffer the proviso daze from the Persian Gulf.

What tin an capitalist bash astir this? The easiest happening to bash is look astatine stocks of companies with accumulation centered successful the Americas. These see Diamondback Energy (NASDAQ: FANG) and Devon Energy (NYSE: DVN). Diamondback Energy is an lipid relation focused astir wholly connected Texas, portion Devon Energy is dispersed crossed the full U.S. If you privation much lipid and earthy state coming to marketplace -- arsenic astir everyone does astatine this infinitesimal -- past Diamondback and Devon are going to beryllium immoderate of the cardinal sources for that increase.

Time to bargain lipid stocks?

As of this penning connected April 30, some Diamondback Energy and Devon Energy are trading astatine tenable guardant price-to-earnings (P/E) ratios of astir 10. This is based connected what Wall Street analysts judge the companies tin gain successful nett income (or sometimes adjusted earnings) implicit the adjacent 12 months. Both stocks are trading up astir 40% twelvemonth to date.

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