Oil Could Hit $150 or Higher, Experts Warn. These Energy Stocks Are Built for the Shock.
JPMorgan warned that oil could top $150 a barrel if the Strait of Hormuz remains closed through mid-May. Low-cost oil producers like Chevron and ConocoPhillips are poised to benefit from a continued surge in crude prices.
Oil prices may surge to $150 a barrel or higher if the Strait of Hormuz remains closed, according to JPMorgan. The global economy is currently using emergency stockpiles to offset the supply disruption caused by the closure. The lowest-cost producers, such as Chevron and ConocoPhillips, would be the biggest beneficiaries of higher prices. Chevron has a breakeven level of around $30 a barrel and can fully fund its capital program and dividend at sub-$50 oil. ConocoPhillips' breakeven level is in the mid-$40s. The Strait of Hormuz closure has resulted in a 57% fall in oil production in the Persian Gulf.
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