Diesel and crude prices both rocketing as Russia cuts supply and US strikes Iran — cash in on oil refiners
Oil prices are soaring because the US is actively striking Iran, and the supply squeeze just got dramatically worse with Russia banning diesel exports. Refiners are perfectly positioned to cash in on the sudden global fuel shortage.
Idea
The global fuel supply is facing a massive double shock. On one side, US military strikes against Iran are threatening major shipping routes and driving up the base price of crude oil. On the other side, Russia just banned diesel exports, causing US diesel futures to post their biggest daily jump in four years. When the raw material (crude oil) and the refined product (diesel) both surge simultaneously due to geopolitical chaos, independent oil refiners stand to make enormous profits from processing fuel. This combination points to a momentum trade in companies that turn oil into gasoline and diesel.