--- title: "Exclusive: Skip USO and BNO? Louis Navellier Explains Why Traders Should 'Prefer Individual Stocks' Like PSX" type: "News" locale: "en" url: "https://longbridge.com/en/news/293020996.md" description: "Amid the 2026 U.S.-Iran conflict and energy market volatility, investor Louis Navellier advises against energy ETFs like USO and BNO due to futures rollover risks. Instead, he recommends individual refining stocks such as Phillips 66 (PSX) and HF Sinclair (DINO), citing strong earnings forecasts and historic profit margins driven by global refining bottlenecks. Analysts agree that direct investment in resilient refining infrastructure offers a stronger tactical advantage than betting on crude futures." datetime: "2026-07-17T10:03:21.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293020996.md) - [en](https://longbridge.com/en/news/293020996.md) - [zh-HK](https://longbridge.com/zh-HK/news/293020996.md) generator: "portal-rs" --- # Exclusive: Skip USO and BNO? Louis Navellier Explains Why Traders Should 'Prefer Individual Stocks' Like PSX As the U.S.-Iran conflict injects massive volatility into global energy markets, renowned investor **Louis Navellier** is urging traders to skip popular energy ETFs like **United States Oil Fund LP** (NYSE:USO) and **United States Brent Oil Fund LP** (NYSE:BNO) Instead, Navellier advises that investors should “prefer individual stocks,” specifically recommending refiners like **Phillips 66** (NYSE:PSX) to capitalize on the 2026 energy crunch. ## **Case Against Energy ETFs** Navellier, founder and chief investment officer of Navellier & Associates, is taking a firm stance against broad commodity funds amid surging market volatility. "I do not recommend any energy ETFs and prefer individual stocks," Navellier stated. Instead of tracking geopolitical risk through exchange-traded funds, Navellier is targeting downstream players that are positioned to capture high margins. He noted, “I do recommend refiners like **HF Sinclair Corporation** (NYSE:DINO) and PSX due to strong forecasted sales and earnings.” This sentiment regarding the structural risks of ETFs is echoed by Bitunix Exchange analyst **Dean Chen**. Chen warned that funds like USO and the BNO carry significant futures rollover risks. If the U.S.-Iran conflict suddenly de-escalates and supply chains normalize, the futures curve could flip into contango, generating painful “negative roll costs” for long-term ETF holders. **Read Also: ASTS Punished Over 1.5% Dilution? Shay Boloor Bought the Dip, Calls Fundraise 'Completely Misunderstood'** ## **‘Temporary’ War Premium** While geopolitical tensions and naval blockades have pushed crude prices to near-term highs, Navellier does not foresee a sustained, runaway rally driven by the conflict alone. He expects strong seasonal factors to support prices, projecting WTI crude to remain high—” up to $82 per barrel for WTI”—through Labor Day due to peak worldwide demand. However, he dismissed the longevity of the war-driven price premium. "The recent uptick in crude oil prices due to the resumption of U.S. attacks on the IRGC is expected to be temporary, since the IRGC is being systematically neutered," Navellier explained. ## **The 2026 Refining Bottleneck** Navellier’s preference for individual refining stocks like PSX aligns perfectly with a broader structural shift in the energy sector. With approximately 10% of global refining capacity currently offline, active refiners are posting historic profit margins. As Chen summarized, "In 2026, global oil pricing is no longer determined only by how much crude exists underground, but by the physical limits of alternative trade routes and whether critical energy infrastructure can survive geopolitical conflicts." For now, experts agree that investing directly in resilient refining infrastructure offers a stronger tactical advantage than betting on crude futures. ## **Price Action in Crude and Related Instruments** Navellier’s recommendations, PSX and DINO have both advanced in 2026. PSX was up 56.01% year-to-date, 17.05% over the month and 62.79% over the year. Meanwhile, DINO gained 88.45% YTD, 30.43% over the month and 102.57% over the year. At the last check, Crude Oil WTI Futures were up 1.63% at $80.24, and Brent Oil Futures were up 1.28% at $85.31. Meanwhile, USO closed 1.71% lower on Thursday, and it was up 1.38% in the premarket on Friday. Similarly, BNO closed 1.70% lower at $47.78, and it was 1.22% higher in the premarket on Friday. **Read Also: Trump Accounts Projections Are 'Ridiculous, Dishonest and Deeply Misleading,' Says Top Economist Justin Wolfers** ***Disclaimer:*** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.* *Photo courtesy: MMD Creative on Shutterstock.com* ### Related Stocks - [PSX.US](https://longbridge.com/en/quote/PSX.US.md) - [DINO.US](https://longbridge.com/en/quote/DINO.US.md) - [BNO.US](https://longbridge.com/en/quote/BNO.US.md) - [USO.US](https://longbridge.com/en/quote/USO.US.md) - [UCO.US](https://longbridge.com/en/quote/UCO.US.md) - [ASTS.US](https://longbridge.com/en/quote/ASTS.US.md) ## Related News & Research - [Phillips 66 (PSX) Is Up 7.4% After Wartime-Driven Margin Surge and New Midstream Contracts - What's Changed](https://longbridge.com/en/news/296430558.md) - [Crude Oil Prices Jump as Hopes Dim of Reopening the Strait of Hormuz](https://longbridge.com/en/news/296513985.md) - [Refining Capacity Shock Keeps Fuel Supply Tight](https://longbridge.com/en/news/296634901.md) - [Asia Fuel Oil-Premiums extend climb on supported buying interest](https://longbridge.com/en/news/296212198.md) - [Csenge Advisory Group Invests $1.02 Million in Phillips 66 $PSX](https://longbridge.com/en/news/296457119.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**