Key Points
Equinor, PBF Energy, and Chevron offer different ways to benefit from high energy prices.
Balancing refiners and producers can help manage portfolio risk.
With the price of oil approaching $100 per barrel and energy infrastructure in the Persian Gulf under attack from all sides, it's a good idea to buy a little protection for your portfolio from the risk of an extended period of relatively high energy prices. The risk isn't just a spike in oil prices; there's also a risk that infrastructure damage will be lasting, and that traffic through the Strait of Hormuz could be closed for an extended period. In this context, buying into energy companies Equinor ASA(NYSE: EQNR), PBF Energy(NYSE: PBF), and Chevron(NYSE: CVX) provides investors with a nice mix of investment themes to benefit from in the current environment.
Equinor: A stock ideally placed to serve Europe's energy needs
About 20% of the world's energy passes through the Strait of Hormuz, and its closure has severe consequences for the supply of liquefied natural gas (LNG), crude oil, and petrochemicals such as urea and fertilizer. The immediate impact will be felt in Asia. The International Energy Agency (IEA) estimates that 80% of oil passing through the Strait is destined for Asia, and 90% of LNG, too.
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Image source: Getty Images.
However, if there's a shortage of crude and LNG from the region, Asian countries will compete for energy supplies to Europe, pushing up energy prices for Europeans. The answer to your next question is... Norway. The next answer is Norwegian energy giant Equinor, which is the largest supplier of natural gas from the Norwegian continental shelf to Europe.
As you can see in the following chart, Norwegian energy exports to the European Union received a massive boost after the Russian invasion of Ukraine in 2022.
European Union Crude Oil Imports from Norway data by YCharts
Wall Street analysts are expecting a similar outcome from recent events. According to S&P Global Market Intelligence, the analysts' consensus for Equinor's 2026 earnings per share (EPS) has jumped from $2.66 a month ago to $3.26, putting Equinor at a price-to-earnings ratio of 12.4 based on full-year estimates.
While there's no guarantee that the near-term conditions will persist, it's a good idea to protect the downside in a portfolio, and a 3.9% dividend yield doesn't hurt in the process.
PBF Energy and Chevron
These two are discussed together because they help offset each other's risk. It's a nuanced argument, so bear with me.
The chart below shows how well petroleum refiner PBF Energy's stock has performed in 2026. It's a notable outperformance compared to Chevron.
PBF Energy owns and operates six refineries in the U.S., processing light sweet to heavy crude oil and producing a mix of transportation fuels, heating oils, feedstocks, and petroleum products. Because crude oil is an input cost, PBF is exposed to higher energy prices, but what really matters is something called the crack spread. This is simply the difference between the price of a barrel of crude oil and the market price of the refined product (say, gasoline and diesel).
The most commonly used crack spread is the 3-2-1 crack spread, which is the difference between producing two barrels of gasoline and one of diesel, compared to the input cost of one barrel of crude oil. PBF Energy's stock has won the star prize and soared this year because the 3-2-1 crack spread has widened from about $19.80 per barrel at the start of the year to about $52 a barrel at present.
The reason the spread has exploded comes down to the difficulty rival refiners have sourcing crude from the Gulf and to a lack of refined products coming from the Gulf.
Image source: Getty Images.
Why Chevron helps balance risk
While refiners like PBF Energy and Valero are enjoying bumper profits, the crack spread could decline if demand destruction occurs amid high gasoline and diesel prices. In that case, PBF Energy's stock price could underperform, and buying Chevron stock will help balance that risk. Although Chevron is an integrated major and has downstream (refining) operations, it's primarily a crude producer and will benefit from higher oil prices, even if the crack spread closes.
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Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool recommends Equinor Asa. The Motley Fool has a disclosure policy.
