Brent Crude Tops $100 After Reports of Tanker Attacks Near Saudi Arabia. Should Investors Buy Oil Stocks Now?
2026-07-23 18:20
•Matt Dilallo •The Motley Fool
•••• ••••• Axe Capital view
Oil Prices Surge Past $100: Time to Buy Sasol?
Brent crude is rallying on tanker attacks in the Red Sea, pushing oil above $100 a barrel and raising questions for South African investors.
The recent Houthi attacks on oil tankers have pushed Brent crude above $100 a barrel, a level not seen in some time. The disruption of key supply routes like the Strait of Hormuz and the Red Sea has traders nervous about sustained tightness in oil markets. While this has sparked a roughly 7% jump in crude prices and Goldman Sachs’ $120 forecast for oil, South African oil stocks like Sasol haven’t fully reflected this surge—they remain modestly up compared to the 65% rise in global oil. Sasol’s integrated operations, including chemicals and fuel production, mean it could benefit well if oil stays elevated. However, geopolitical risks are tricky; a de-escalation or alternative supply routes reopening could quickly soften prices and hurt shares. Likewise, a stronger rand, which often moves inversely to commodity prices, could pressure Sasol’s earnings in rand terms even if dollars remain high. this is just my opinion and not financial advice
I would watch Sasol closely and consider buying on any dips while oil stabilizes above $90. The rand’s volatility adds risk, so I wouldn’t load up aggressively yet. Avoid entering if there’s signs of easing conflict.
- Sasol
- USD/ZAR
- Geopolitical de-escalation easing oil supply concerns
- Rand appreciation reducing local currency earnings for exporters
7/10
Brent crude surged 7% to over $100 a barrel following reports of Houthi attacks on Saudi Arabian oil tankers in the Red Sea. With ongoing disruptions to oil supply routes via the Strait of Hormuz and the Red Sea, Goldman Sachs warns crude could reach $120 a barrel. Despite oil's 65% surge this year, major oil stocks have only gained modestly, presenting potential upside for investors.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Matt Dilallo
Categories: Equities, Earnings, Commodities, Energy
Tickers: CVX, GS, GSPA, GSPC, GSPD
Sentiment: Positive - Oil price surge to $100+ barrel benefits Chevron significantly. The company has delivered structural cost reductions and is positioned to generate higher earnings and cash flow at elevated crude prices. Stock has only gained 30% YTD despite 65% oil surge, suggesting upside potential. Goldman Sachs is mentioned as a research source providing price forecasts ($120 potential, $100 average in 2027) rather than as an investment recommendation. The mention is informational regarding market analysis.
Keywords: Brent crude, oil prices, Houthi attacks, Red Sea, Strait of Hormuz, supply disruption, oil stocks, Iran
Insights:
- CVX: Positive: Oil price surge to $100+ barrel benefits Chevron significantly. The company has delivered structural cost reductions and is positioned to generate higher earnings and cash flow at elevated crude prices. Stock has only gained 30% YTD despite 65% oil surge, suggesting upside potential.
- GS: Neutral: Goldman Sachs is mentioned as a research source providing price forecasts ($120 potential, $100 average in 2027) rather than as an investment recommendation. The mention is informational regarding market analysis.
- GSPA: Neutral: Goldman Sachs is mentioned as a research source providing price forecasts ($120 potential, $100 average in 2027) rather than as an investment recommendation. The mention is informational regarding market analysis.