Texas Capital Texas Oil Index ETF

OILT

Market cap $15.4M

While the markets are generally fixated on what the Magnificent Seven is doing in terms of first-quarter earnings, there are other names investors may want to track. This morning's earnings bonanza was highlighted by names like Coca-Cola (KO), BP p.lc.

Since the start of Operation Epic Fury at the end of February, Brent crude oil prices have risen as high as $150 a barrel as the Strait of Hormuz has been effectively closed by Iran.  Panic over supply is driving energy prices higher, and consumers are experiencing it at the pump with soaring gasoline prices.

The conflict between the U.S., Israel, and Iran is sending shockwaves through global crude oil markets. Refineries in Europe and Asia are paying record high prices for crude, a staggering reflection of the tightening supply chain.

As a Texan, I have always appreciated the state's advantages, but Texas is increasingly drawing attention well beyond its borders. The investment case is tied to several powerful economic themes.

Energy is dominating headlines on escalating geopolitical tensions in the Middle East.  Following military strikes over the weekend, disruptions in the Strait of Hormuz — a chokepoint responsible for roughly 20% of global oil flow — have sent markets into a risk-off frenzy.

OILT hits a new 52-week high, up 50% from its low, as oil prices surge on geopolitical tensions.

Summary While the Permian tends to be known for its oil output, its production mix continues to get gassier, with gas production growth outpacing that of oil. Midstream companies are building new pipeline takeaway capacity from the Permian.

Through ETFs, iShares has long offered exposure to equity markets like Canada and Italy. Soon, the firm will provide access to an even larger market.

On this week's episode of ETF Prime, Stacey Morris, CFA, head of energy research at VettaFi, discussed the state of play for the energy and energy infrastructure sectors. Afterward, Mike Akins, founding partner at ETF Action, joined the podcast to break down ETF flows.

I've been writing about ETFs for almost 15 years. At my job, talking about an ETF by its ticker, and not its name, is the norm.