Oil Stocks: Markets Prepare for a Nuclear Iran

Oil Stocks: Markets Prepare for a Nuclear Iran

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With the potential threat of nuclear weapons in North Korea pushed to the sidelines, Washington is shifting more of its focus onto Iran. Which is a good thing, because the threat level in the Middle East is running ever higher. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)

According to The New York Times, American officials who have assessed Iran's possible responses to any attack by Israel on its nuclear program believe Iran would almost certainly retaliate by launching missiles on Israel.

The secondary threat, and primary to US officials, are supplemental and "terrorist-style attacks on United States civilian and military personnel overseas." More specially, they believe petroleum infrastructure in the Persian Gulf and American troops in Afghanistan would be targeted.

"The Iranians have been pretty good masters of escalation control," said Gen. James E. Cartwright, who was the top officer at Strategic Command and as vice chairman of the Joint Chiefs of Staff participated in war games involving both deterrence and retaliation on potential adversaries like Iran.

Of course, it is difficult to delve into the minds of leaders in Israel and Tehran, especially in the "heat of conflict." The US can only provide their best assessment. For more as reported by The New York Times, click here.

Oil Prices

In the event of an attack from Israel, Iran could and likely will try to block the Strait of Hormuz, which would greatly unsettle oil markets.

The Strait is a main route for oil in the gulf, and the market is well aware of the high stakes posed by closing the strait. Many believe $100 barrels will become the floor under the "new normal" for the oil market.  

Business Section: Investing Ideas

So, as the threats of a war escalate, the economy prepares for impact. Will this benefit US oil companies?  For ideas on how to invest on such a trend, we ran a screen on oil companies that have been boosted by bullish sentiment.

Specifically, we took the top 200 by market cap and looked at institutional and insider buying trends. The names below have seen net positive purchases on both accounts.

Do you think institutional buyers and company insiders are making the right call?

Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:

 

“1. Kinder Morgan Management LLC (KMR, Earnings, Analysts, Financials): Operates as an energy transportation and storage company in North America. Oil & Gas Pipelines. Net institutional purchases in the current quarter at 3.6M shares, which represents about 4.75% of the company's float of 75.82M shares. Over the last six months, insiders were net buyers of 45,000 shares, which represents about 0.06% of the company's 75.82M share float.

 

“2. NuStar Energy L.P. (NS, Earnings, Analysts, Financials): Engages in the terminalling, storage, and transportation of petroleum products primarily in the United States, Canada, the Netherlands, St. Oil & Gas Pipelines. Net institutional purchases in the current quarter at 2.9M shares, which represents about 5.42% of the company's float of 53.51M shares. Over the last six months, insiders were net buyers of 201,030 shares, which represents about 0.38% of the company's 53.51M share float.

 

“3. Energy XXI (EXXI, Earnings, Analysts, Financials): Engages in the acquisition, exploration, development, and operation of oil and natural gas properties onshore in Louisiana and Texas and offshore in the Gulf of Mexico. Oil & Gas Equipment & Services. Net institutional purchases in the current quarter at 6.3M shares, which represents about 10.03% of the company's float of 62.83M shares. Over the last six months, insiders were net buyers of 56,448 shares, which represents about 0.09% of the company's 62.83M share float.

 

“4. Calumet Specialty Products Partners LP (CLMT, Earnings, Analysts, Financials): Produces and sells specialty hydrocarbon products in North America. Oil & Gas Refining & Marketing. Net institutional purchases in the current quarter at 1.4M shares, which represents about 5.48% of the company's float of 25.54M shares. Over the last six months, insiders were net buyers of 156,140 shares, which represents about 0.61% of the company's 25.54M share float.

 

“5. SemGroup Corporation (SEMG, Earnings, Analysts, Financials): Provides gathering, transportation, storage, distribution, blending, marketing, and other midstream services primarily to independent producers, refiners of petroleum products, and other market participants in the Midwest and Rocky Mountain regions of the United States, Canada, and the West Coast of the United Kingdom. Oil & Gas Pipelines. Net institutional purchases in the current quarter at 7.5M shares, which represents about 20.87% of the company's float of 35.93M shares. Over the last six months, insiders were net buyers of 11,519 shares, which represents about 0.03% of the company's 35.93M share float.

 

“6. Hercules Offshore, Inc. (HERO, Earnings, Analysts, Financials): Provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry in the U. Oil & Gas Drilling & Exploration. Net institutional purchases in the current quarter at 9.0M shares, which represents about 6.8% of the company's float of 132.44M shares. Over the last six months, insiders were net buyers of 55,000 shares, which represents about 0.04% of the company's 132.44M share float.

 

 

(Written by Rebecca Lipman. Institutional data sourced from Fidelity, short data sourced from Yahoo! Finance.)

 

Use Kapitall's Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall's tab navigation to browse through the data…

 

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