These oil stocks are increasing as the risk explodes in the Middle East

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Oil prices rose three dollars overnight, but there are a number of stocks that benefited from the fear premium following the assassination attempt on Qasem Soleimani, head of the Iranian Revolutionary Guard's Quds force, in a U.S. drone attack in Baghdad.

The same independent US oil companies that have recently reduced their portfolios saw an increase of 3% to 6% as of Friday morning.

Apache, Ringenergie, Matador Resources, Devon, EOG Resources, Pioneer Natural Resources, Hess … all of the US independents have won, while the Supermajors are either lower or trading flat.

Even the troubled Chesapeake Energy has seen an increase of almost 7%.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "The biggest winners so far"data-reactid =" 15 ">The biggest winners so far

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "# 1 Chesapeake (NYSE: CHK)"data-reactid =" 16 "># 1 Chesapeake (NYSE: CHK)

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Before the assassination, this stock was definitely no-go because Chesapeake is largely an American slate giant shortly before the collapse, It is now the greatest beneficiary of potential world war leadership. "Data-reactid =" 17 "> Before the assassination attempt, this stock was an absolute ban, since Chesapeake is largely an American slate giant that is about to collapse and is the greatest beneficiary of possible world war leadership.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "# 2 ring energy (NYSEAMERICAN: REI)"data-reactid =" 34 "># 2 ring energy (NYSEAMERICAN: REI)

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To date, if you had bought shares in this oil – and gas companies in Midland, Texas, you sat on one three years ago 80% more loss, But thanks to the drone attack in Baghdad, it's over 8%. Either get in now – and get out quickly – or make up for some of your losses when you have them when you shouldn't have any data -reactid = "35"> if you owned the Midland, Texas three years ago , the local oil and gas company, you would have lost over 80% to date, but thanks to the Baghdad drone, if you strike, that's an increase of over 8%. Either get in now – and get out quickly – or make up some of your losses if you made it if you shouldn't have.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "# 3 SM Energy (NYSE: SM)"data-reactid =" 52 "># 3 SM Energy (NYSE: SM)

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "With assets in Eagle Ford and Permian, SM Die SM shareholders already felt better in mid-December when the stock gained 20% after years of terrible losses, and SM fell in three years almost 75%, & nbsp; "data-reactid =" 53 "> With assets in Eagle Ford and Permian, SM rose 8% after the drone attack by the Iranian Quds general. SM shareholders already felt a little better in December than the share after Years of terrible losses grew 20% and SM lost almost 75% in three years.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Matador Resources No. 4 (NYSE: MTDR)"data-reactid =" 74 ">Matador Resources No. 4 (NYSE: MTDR)

Third place so far is Matador Resources with a 5-6% increase in geopolitical uncertainty.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "After a few hard years, Matador had one ~ 30% profit in the run-up to the drone attack in Baghdad. A total profit of 13% was recorded for 2019. "Data-reactid =" 76 "> After a few difficult years, Matador saw ~ 30% growth leading to the drone attack in Baghdad. For 2019, overall profit was 13%.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "# 5 Apache Corporation (NYSE: APA)"data-reactid =" 94 "># 5 Apache Corporation (NYSE: APA)

Apache, which has just started to recover from its overwhelming coverage of its first offshore drilling in Suriname thanks to an unexpected agreement with French giant Total SA, is experiencing another 2-3% fear threshold.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "How long does the Fear Premium run?"data-reactid =" 112 ">How long does the Fear Premium run?

That depends on the rhetoric.

It has been a busy week in Iraq, and the news flow has to be important to the fear premium, or it will end soon, just like after the strike at Saudi Aramco's facilities this summer.

Earlier this week, an Iran-backed militia attacked a military base near Kirkuk that wounded four US troops and killed a contractor. This triggered a US air strike response to "Iranian proxy" targets in Iraq and Syria. Then pro-Iranian demonstrators attacked a US embassy and withdrew after significant damage.

The attacks were staged by a pro-Iranian group called Kataib Hezbollah, which is seeking to withdraw US troops from Iraq at a time when mass protests are aimed at removing Iranian influence.

With the final airstrike, Qasem Soleimani, the mastermind of the Iranian military and the most important influencing factor in the region, was shot down from Iraq to Syria.

Because the fear premium depends on mood, it depends on whether there is a war on the market or whether the market believes Iraqi oil will be threatened.

The market doesn't have to understand geopolitics, war, or alliances. It just has to feel fear.

Iran has praised an answer equivalent to the murder of its Quds chief. It is not clear what that would be, and it is likely that it is not yet clear to Iran.

The market is reacting to rhetoric. And there will be a lot of that. Tehran must save face and Trump is distracting from impeachment and trying to lose ground before the 2020 elections.

What will disrupt the market and tarnish the fear premium will be the memory of how quickly the situation deteriorated after the attack on Saudi Aramco facilities, which posed a direct threat to global oil supply.

Despite the rhetoric, the premium lasted one day.

The safe bet? Play the day, not the future.

By Anes Alic for Oilprice.com

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Other Top Reads by Oilprice.com:"data-reactid =" 126 ">Other Top Reads by Oilprice.com:

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Read this article on OilPrice.com"data-reactid =" 131 "> Read this article on OilPrice.com