US Refiners Outshine NVIDIA Amid Energy Market Upheaval

Despite the Iran war dominating headlines and oil prices rising globally, some investors are looking to the energy sector for opportunities. Two US refiners, HF Sinclair (DINO) and Par Pacific Holdings (PARR), have outperformed NVIDIA (NVDA) in recent share price performance.

Data from the International Energy Agency shows that global refinery throughput dropped 6% year-over-year in July due to disruptions in fuel production caused by the war in Iran and damage to Russian refining infrastructure. This has led to lower supplies of refined fuels such as gasoline and diesel, with the IEA forecasting a 2.5 million barrel per day decline in worldwide refinery throughput by 2026.

US refiners are operating at near maximum capacities, resulting in exceptionally strong margins for HF Sinclair and Par Pacific Holdings. These companies have seen significant gains year-to-date, with PARR up 110.1% and DINO up 102.4%, outperforming NVDA's 14.3% gain.

Par Pacific continues to benefit from a strong refining market, with its refining index remaining high in July at $31.34 per barrel. The company is well-positioned to take advantage of still-strong refining margins and tight global product inventories. HF Sinclair also sees opportunities arising from low fuel inventories in the US and key operating regions.

Both companies currently have a Zacks #1 Rank (Strong Buy), making them attractive bets for investors looking to capitalize on the current energy market environment.