Oil Prices Soar to $100, But Stocks Plummet on Supply Fears

Oil prices surged to $100 per barrel for the first time since May, but oil company stocks are not following suit. The West Texas Intermediate (WTI) crude price is up $3.44 at $99.49, with January crude also increasing by $2.

The XLE oil company ETF, which tracks Exxon and Chevron, is down 1.1% in a reversal from the open. This discrepancy has raised questions about what's driving the move.

Some analysts suggest that the strength of oil prices may be tied to politics, particularly President Trump's stance on Iran. With the midterms approaching, Trump's promise of $5000 checks to Americans and his continued support for tariffs have been seen as a Hail Mary by some.

However, the path of least resistance may be for Trump to walk away from Iran, rather than risking loss of control of the Senate and two years of Democratic-controlled hearings. Refineries are struggling to keep up with product markets breaking, which could further exacerbate shortages.