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While the broader market grapples with geopolitical instability, Shell plc (SHEL)
, along with other large integrated oil companies, have benefited from higher oil prices and should warrant investor attention.
Despite the dual blockades by both Iran and the US currently roiling the Strait of Hormuz — the most significant energy supply disruption in modern history — Shell’s integrated model and massive trading arm are positioned to thrive. Even if ongoing negotiations lead to a de-escalation, the logistical backlog will take quarters to unwind, keeping energy prices structurally supported, to say nothing of the need to replenish strategic petroleum reserves; an important insurance policy as the world has now been painfully reminded.
For investors looking to harvest yield from this environment, I’m targeting a moderately bullish income play.
