Energy Stocks Rise Amid Middle Eastern Conflict: Oxy or ET for Your Portfolio?

The global reliance on oil and natural gas has been highlighted by the ongoing conflict in the Middle East, which has caused supply disruptions and led to rising energy prices. To mitigate this risk, investors can add exposure to the energy sector through various means.

One option is Occidental Petroleum (NYSE: OXY), an upstream energy company that produces oil and natural gas with operations in the Middle East and Africa, but most of its production and sales are based in the US. The company stands to benefit from high prices due to reduced supply, but its financial results are also volatile due to commodity price fluctuations.

Another option is Energy Transfer (NYSE: ET), a midstream master limited partnership that owns energy infrastructure assets across North America. It charges fees for using its assets to move oil and natural gas around the world, making its success dependent on strong demand rather than commodity prices.