US Fuel Stocks Feel the Heat of Conflict-Driven Supply Disruptions

Oil markets are on edge due to conflict in Iran, which is affecting supply routes and US refineries that are running at full capacity. This has led to a mix of risk and potential opportunity for investors who care about how fuel costs impact their portfolios.

Three US fuel stocks stand out: OPAL Fuels (OPAL), CVR Energy (CVI), and Stabilis Solutions (SLNG). These companies are exposed to the refining margins, supply route risks, and utilization issues affecting the industry. They also offer a cleaner angle through renewable natural gas and LNG logistics.

OPAL Fuels produces and distributes renewable natural gas as a vehicle fuel for US heavy and medium-duty truck fleets. The company generates revenue from RNG fuel, renewable power, and fuel station services. While it has a growing network of public access stations in freight-heavy regions like California, it remains unprofitable and relies on external funding.

CVR Energy is a US-based petroleum refiner that turns crude oil into gasoline, diesel, jet fuel, and other transportation products. It also runs smaller renewable diesel and nitrogen fertilizer businesses. The company has turned profitable again but carries high leverage and regulatory overhang from RINs and changing biofuel rules.

Stabilis Solutions is a Houston-based energy transition company that produces, stores, transports, and fuels liquefied natural gas for industrial, power, marine, and other heavy energy users across North America. It also offers engineering support and rents cryogenic equipment to customers. The company remains loss-making but has growth projects in the works.