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EOG Resources Inc. (EOG $108.59)
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Occidental Petroleum Corporation (OXY $44.55)
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Canadian Natural Resources Limited (CNQ $49.81)
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Cenovus Energy Inc. (CVE $26.45)
Q: Hello team,
Given the looming tensions in the Middle East, which Canadian or US oil company listed above will have the highest price potential if the United States attack Iran?
I would also like to hear your perspective on the probability of this event in the near future, the price of oil as a result, and any oil company which you would consider buying in advance.
Thank you as always!
Given the looming tensions in the Middle East, which Canadian or US oil company listed above will have the highest price potential if the United States attack Iran?
I would also like to hear your perspective on the probability of this event in the near future, the price of oil as a result, and any oil company which you would consider buying in advance.
Thank you as always!
5i Research Answer:
We would say the probability of something happening is high, but it will be of low impact and limited in scope. Similar to other attacks, in that Iran is often given notice and it is more to make the point of sending a message. Still, it would likely spike oil in the short term. OXY likely would have the most leverage here. We would not buy JUST on this possible event, though.