Oil Stocks Surge on Iran War, Bullish Catalysts

The oil sector has seen significant gains recently, with several major players reaching new highs. Chevron (CVX), Cenovus (CVE), Canadian Natural Resources (CNQ), and others have all broken records, indicating a strong bull case for oil stocks.

This surge can be attributed to several factors, including the ongoing Iran War, which has disrupted oil flows from the Middle East. The resulting shortage in oil supplies has driven prices up, supporting large cash flows for oil and gas firms.

Additionally, most countries have depleted their buffer supplies of oil and refined petroleum products over the past five months, leading to a need for restocking, which will further support oil prices above $80 per barrel.