Iran blocked, Russia bans diesel — double oil shock means go long Chevron and Ex
Thesis
Russia banning diesel exports due to refinery attacks and the US simultaneously blocking Iranian oil sales creates a dual supply shock. Both events reduce the amount of oil and fuel available on the global market, pushing prices up. As noted in the premarket movers list, Chevron is already seeing strong action on this news. When oil prices surge due to geopolitical conflicts rather than demand drops, integrated oil majors capture the margin directly at the wellhead.
Strategy approach
Build a long-only momentum strategy on CVX and XOM using daily candles. Entry: buy when front-month WTI crude oil futures (CL1) make a new 20-day high and CVX or XOM close up >2% on the same session. Exit: take profit if WTI drops 5% off its recent peak, or hold for 15 trading days maximum. Use a 6% hard stop loss.