ExxonMobil, Chevron, and Shell say crude prices are likely to stay elevated even after the Middle East conflict ends, pointing to tight supply and shrinking reserves rather than the fighting itself. Motley Fool analyst Reuben Gregg Brewer argues investors may be better off leaning on midstream pipeline operators and blue-chip dividend payers than trying to time oil's swings.
US crude futures rose 1.29% on Aug 2, 2026, the latest swing in an energy market that keeps lurching with headlines from the Middle East. Natural gas slipped 0.4% the same day. The conflict has cycled through peace talks and renewed fighting, and there's no easy resolution in sight.
Exxon, Chevron, and Shell brace for prices to stay high
ExxonMobil, Chevron, and Shell all warned that oil prices are likely to stay high even after the Middle East conflict ends. Exxon and Chevron point to near-term supply and demand: rebuilding output to pre-conflict levels will take time, and stockpiles have been drawn down so deeply that replenishing them will also take time.
Shell's warning looks further out. A growing global population and expanding economies in developing nations keep lifting demand for oil and natural gas, even as both remain finite resources that leave less to extract the more they're pumped. That structural mismatch, not just the conflict, is what will likely keep the sector volatile well beyond the next few months.
Midstream pipelines offer a hedge against price swings
For investors wary of the volatility, Brewer suggests looking past oil prices entirely to North American midstream businesses such as Enterprise Products Partners (EPD) and Enbridge (ENB), which collect fees for moving oil and gas rather than selling the commodities themselves. Demand for these fuels remains robust, and the conflict may even push countries worried about energy security toward the more stable North American market, adding further demand for pipeline capacity.
Enterprise's distribution yield stands at 5.7%, backed by 27 years of annual increases. Enbridge pays a 5% dividend yield, backed by 31 annual increases in Canadian dollars.
Dividends may matter more than the price of crude
Brewer argues the biggest oil companies have weathered enough commodity cycles that their payouts, not their profits, tell the real story of resilience. Exxon has posted 43 annual dividend increases and yields 2.6%. Chevron isn't far behind at 38 years, with a higher 3.8% yield that probably makes it the better pick for income-focused investors.
Sources: The Motley Fool, Yahoo Finance
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