Oil stocks were down on Tuesday after President Donald Trump predicted that the war with Iran won’t last long. The President has promised to not get the U.S. involved in protracted wars and has argued that oil prices increased artificially due to the conflict in Iran. He’s also dedicated U.S. Navy ships to protecting oil exports from the Middle East.
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With President Trump’s actions and comments, there’s hope that the war in Iran won’t last too long. If it does, it could continue to increase oil prices. Price increases have already been felt at the pump, with customers paying more for fuel. While that would benefit U.S. oil stocks, a quicker end to the war could cause them to retreat.
While President Trump may have predicted a quick end to the war in Iran, the country’s leaders have made no indication that they will back down. That’s despite missile strikes that have severely reduced Iran’s combat capabilities. Trump has also suggested more strikes on critical infrastructure to bring an end to the war. He said that without surrender, the U.S. will decimate Iran to the point that it will take years to be rebuilt.
Oil Stocks Retreating Today
With news of a quick end to the war, oil stocks have fallen today.
- Exxon Mobil (XOM) stock was down 1.21% this morning.
- Chevron (CVX) stock fell 1.58% on Tuesday.
- Schlumberger (SLB) stock slipped 0.13% as of this writing.
- EOG Resources (EOG) stock decreased 1.69% today.
- ConocoPhillips (COP) stock dropped 2.09% this morning.
- Marathon Petroleum (MPC) stock dipped 0.17% today.
Which Oil Stocks Do Analysts Favor?
Turning to the TipRanks stock comparison tool, traders can see which of these oil stocks analysts prefer. Schlumberger has the best analysts’ consensus rating at Strong Buy, while the rest of them have Moderate Buy ratings. SLB stock also has the highest upside potential at 14.98%.
