--- title: "After a Big Surge, Crude Prices Cashed the Most in Six Years in the Second Quarter. Here's Your Second Half Energy Stock Outlook." type: "News" locale: "en" url: "https://longbridge.com/en/news/292383449.md" description: "Amid Middle East tensions, oil prices remain volatile. Experts advise long-term investors to maintain energy exposure due to the sector's vital role and depleted reserves. While pure producers like Devon Energy carry high risk, integrated giants Chevron and ExxonMobil offer diversified stability and strong dividends. Chevron is highlighted for its higher yield (3.96%), while midstream companies like Enbridge provide exposure with lower commodity risk." datetime: "2026-07-11T17:26:56.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292383449.md) - [en](https://longbridge.com/en/news/292383449.md) - [zh-HK](https://longbridge.com/zh-HK/news/292383449.md) --- # After a Big Surge, Crude Prices Cashed the Most in Six Years in the Second Quarter. Here's Your Second Half Energy Stock Outlook. There are two big takeaways from the Middle East geopolitical conflict. Both are incredibly important for long-term investors to remember as they build their portfolios. Here's what you need to know about oil prices, which rose dramatically in the first quarter, fell dramatically in the second quarter, and are again rising as the third quarter gets underway amid renewed Middle East tensions. ## Lesson 1: Oil is volatile Oil and natural gas are commodities. They have a long history of rising and falling in dramatic fashion. While the conflict in the Middle East is headline-grabbing news and directly impacts oil prices, it is just one of many events that have done so over the years. It is virtually impossible for investors to time the end of a conflict of this nature, and renewed Middle East tensions suggest the second half of 2026 could be just as volatile for energy prices as the first half. ![A person in protective gear standing in front of energy infrastructure.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzcwMDMvMjRfMDZfMDMtYS1wZXJzb24taW4tcHJvdGVjdGl2ZS1nZWFyLXN0YW5kaW5nLWluLWZyb250LW9mLWVuZXJneS1pbmZyYXN0cnVjdHVyZS1fbWYtZGxvYWQtZ2V0dHlpbWFnZXMtMTYwOTMzNjkxMS0xMjAweDgwMC01YjJkZjc5anBnY3Jkb3dubG9hZC5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. Other factors that could have a similar effect include economic activity, supply and-demand dynamics, political shifts outside of physical conflict, trade disputes, and even major weather events. Anything that leaves the world with too much or too little oil and natural gas could cause energy prices to move dramatically. It is the nature of the industry. ## Lesson 2: Energy is vital for the world's normal functioning The impact of the Middle East conflict also highlights the importance of energy. The reduction in supply pushed prices higher because the world simply can't function without oil and natural gas. This is why most long-term investors should probably have some energy exposure in their portfolios. Expand ![Chevron Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NWWC5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: CVX Chevron Today's Change (1.29%) $2.25 Current Price $176.30 ### Key Data Points Market Cap $351BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $173.51 - $176.33 52wk Range $146.49 - $214.71 Volume 219.7K Avg Vol 9.8M Gross Margin 15.15% Dividend Yield 3.96% In fact, **Chevron** (CVX +1.29%) and **ExxonMobil** (XOM +1.03%), two of the world's largest energy companies, have both warned that oil's price drop wasn't reflective of actual industry fundamentals. In other words, even without the flare-up in the conflict, oil prices were likely heading higher in the second half. The main reason is that oil reserves have been drawn down to worrying levels and need to be rebuilt, while a return to normal industry functioning, when the conflict does finally end, will be a months-long affair. Expand ![ExxonMobil Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1hPTS5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: XOM ExxonMobil Today's Change (1.03%) $1.42 Current Price $138.88 ### Key Data Points Market Cap $576BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $137.14 - $138.97 52wk Range $105.53 - $176.41 Volume 9.8M Avg Vol 17.2M Gross Margin 20.92% Dividend Yield 2.94% ## What should investors do about energy? There are different ways to invest in the energy sector. The one that carries the most risk is a focused oil and natural gas producer, such as **Devon Energy** (DVN +0.44%) or **Diamondback Energy** (FANG +0.76%). Their financial results are almost entirely dependent on energy prices, and their stocks tend to rise and fall along with them. Most long-term investors, and particularly those with a more conservative bent, will be better off with integrated energy giants. Expand ![Enterprise Products Partners Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0VQRC5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: EPD Enterprise Products Partners Today's Change (-0.05%) $-0.02 Current Price $37.27 ### Key Data Points Market Cap $81BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $36.88 - $37.42 52wk Range $30.01 - $40.16 Volume 2.1M Avg Vol 3.9M Gross Margin 13.45% Dividend Yield 5.88% Exxon and Chevron are both integrated energy companies. They have exposure to the entire energy value chain, from production to transportation to chemicals and refining. They don't avoid the ups and downs caused by oil's inherent volatility, but their diversified businesses help to soften the impact of energy price swings. Notably, Exxon and Chevron have very strong balance sheets and long histories of annual dividend increases. Of the two, Chevron is probably the more attractive right now for income-focused investors, thanks to its well-above-market 4% yield. Exxon's yield is 2.9%. Expand ![Enbridge Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0VOQi5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: ENB Enbridge Today's Change (0.09%) $0.05 Current Price $54.64 ### Key Data Points Market Cap $119BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $54.30 - $54.88 52wk Range $44.37 - $58.45 Volume 147.7K Avg Vol 4.4M Gross Margin 30.95% Dividend Yield 5.07% For investors seeking energy exposure while avoiding commodity risk, the midstream could be the solution. Businesses like **Enterprise Products Partners** (EPD 0.05%) and **Enbridge** (ENB +0.09%) own energy infrastructure assets that help to move oil and natural gas around the world. They charge fees for the use of their assets, generating reliable cash flows that aren't directly impacted by energy prices. Both have long histories of increasing their shareholder distributions, as well. Enterprise's yield is 5.8%, while Enbridge's is 5.1%. The one drawback of the midstream is that it tends to grow slowly, so the yield will usually represent a material portion of an investor's return. ## Oil: Higher in the second half There's no way to know what will happen with the Middle East conflict, which is leading to emotional reactions among investors. So expect continued volatility until there's a final resolution. However, given the warnings from Exxon and Chevron and the industry's low inventory levels, it seems likely that oil prices will be biased toward rising in the second half of 2026. Still, while most investors should have some exposure to the industry, you should choose your investments to account for the inherent volatility of the industry, not because you expect oil prices to rise or fall over any given time period. The truth is that oil will always be rising and falling, often in a dramatic way. You should find an investment that allows you to maintain your energy position despite that fact. Good options are diversified energy giants like Exxon and Chevron. For those looking to sidestep energy price exposure, midstream giants like Enterprise and Enbridge could be even better. ### Related Stocks - [DVN.US](https://longbridge.com/en/quote/DVN.US.md) - [XOM.US](https://longbridge.com/en/quote/XOM.US.md) - [CVX.US](https://longbridge.com/en/quote/CVX.US.md) - [ENB.US](https://longbridge.com/en/quote/ENB.US.md) - [USO.US](https://longbridge.com/en/quote/USO.US.md) - [XOMZ.US](https://longbridge.com/en/quote/XOMZ.US.md) - [XOMX.US](https://longbridge.com/en/quote/XOMX.US.md) - [XOP.US](https://longbridge.com/en/quote/XOP.US.md) - [GUSH.US](https://longbridge.com/en/quote/GUSH.US.md) - [AMLP.US](https://longbridge.com/en/quote/AMLP.US.md) - [DUG.US](https://longbridge.com/en/quote/DUG.US.md) - [VDE.US](https://longbridge.com/en/quote/VDE.US.md) - [IEZ.US](https://longbridge.com/en/quote/IEZ.US.md) - [MLPX.US](https://longbridge.com/en/quote/MLPX.US.md) - [IEO.US](https://longbridge.com/en/quote/IEO.US.md) - [ERY.US](https://longbridge.com/en/quote/ERY.US.md) - [OIH.US](https://longbridge.com/en/quote/OIH.US.md) - [XOMO.US](https://longbridge.com/en/quote/XOMO.US.md) - [XES.US](https://longbridge.com/en/quote/XES.US.md) - [DRIP.US](https://longbridge.com/en/quote/DRIP.US.md) - [BNO.US](https://longbridge.com/en/quote/BNO.US.md) - [UCO.US](https://longbridge.com/en/quote/UCO.US.md) - [XLE.US](https://longbridge.com/en/quote/XLE.US.md) - [IXC.US](https://longbridge.com/en/quote/IXC.US.md) - [PXJ.US](https://longbridge.com/en/quote/PXJ.US.md) - [CRAK.US](https://longbridge.com/en/quote/CRAK.US.md) - [ERX.US](https://longbridge.com/en/quote/ERX.US.md) - [MLPA.US](https://longbridge.com/en/quote/MLPA.US.md) - [FANG.US](https://longbridge.com/en/quote/FANG.US.md) - [EPD.US](https://longbridge.com/en/quote/EPD.US.md) ## Related News & Research - [Trump chides Chevron CEO, tells oil companies to bring prices down](https://longbridge.com/en/news/294705107.md) - [Summitry LLC Buys 130,485 Shares of Chevron Corporation $CVX](https://longbridge.com/en/news/294581259.md) - [Prediction: Chevron's bold moves in Iraq will reshape the oil stock over the next decade](https://longbridge.com/en/news/294563352.md) - [Hunter Biden Says Trump Is Making 'Big Oil' Great Again as Chevron, Exxon Mobil Profits Soar—Gavin Newsom Says CVX Is 'Fleecing Californians'](https://longbridge.com/en/news/294645477.md) - [BREAKINGVIEWS-Chevron and Exxon quietly gush over giant profit](https://longbridge.com/en/news/294535479.md)