Crude
oil
prices
have
been
volatile
in
April
amid
heightened
geopolitical
risks.
Fears
of
a
spillover
conflict
in
the
Middle
East
have
led
some
market
watchers
to
predict
oil
prices
could
soar
to
$100
per
barrel
and
beyond
.
Iran
launched
more
than
300
drones
and
missiles
against
military
targets
in
Israel
on
Saturday,
marking
the
first
direct
attack
on
the
Jewish
state
from
Iranian
territory.
While
oil
markets
have
remained
relatively
calm
over
the
recent
air
offensive,
a
significant
retaliation
by
Israel
could
trigger
an
oil
price
rally
,
according
to
Bartosz Sawicki,
market
analyst
at
Conotoxia.
Iran
is
home
to
vast
oil
resources
and
ranks
as
the
third-largest
producer
in
the
Organization
of
the
Petroleum
Exporting
Countries.
Any
disruption
in
its
capacity
to
supply
global
markets
could
send
oil
prices
higher,
analysts
told
CNBC.
“Any
attack
on
oil
production
or
export
facilities
in
Iran
would
drive
the
price
of
Brent
crude
oil
to
$100,
and
the
closure
of
the
Strait
of
Hormuz
would
lead
to
prices
in
the
$120
to
$130
range,”
said
Andy
Lipow,
president
of
Lipow
Oil
Associates.
CNBC
Pro
screened
for
stocks
in
the
MSCI
World
Energy
Index
that
are
both
highly
correlated
or
inversely
correlated
with
international
benchmark
Brent
crude
oil
prices
over
the
past
week,
month,
and
year.
Oil
and
gas
stocks
that
show
a
negative
correlation
with
crude
oil
prices
will
enable
investors
to
withstand
any
volatility
while
remaining
invested
in
the
sector.
In
the
tables
below,
a
correlation
of
1
would
mean
that
as
oil
prices
move,
either
up
or
down,
the
stock
price
also
moves
in
lockstep,
in
the
same
direction.
Conversely,
a
negative
1
would
mean
that
prices
are
in
perfect
synchrony
in
the
opposite
direction.
A
correlation
of
0
would
mean
no
link
between
the
crude
oil
price
and
the
stock
price.
—
CNBC’s
Lee
Ying
Shan
and
Jenni
Reid
contributed
to
this
report.
