Oil Patch Attack

Out where the river broke
The bloodwood and the desert oak
Holden wrecks and boiling diesels
Steam in forty five degrees
--Midnight Oil

Attacks on Saudi Arabian oil fields over the weekend find crude up about 10% this morning. The attacks are thought to have been the work of Iran, although there is no proof as of yet. The Trump administration has signaled that military response is possible if such proof were to surface.

Oil stocks are up in sympathy.

I like US integrated oils like Chevron (CVX) and Exxon Mobil (XOM). Not only are they a hedge on geopolitical instability, but also a play on commodity inflation--a real possibility with $trillions being printed for new rounds of QE.

Sprinkle in 4-5% yields and somewhat so-so sentiment about these names and you have an interesting story.

position in CVX, XOM