Renowned investor Louis Navellier advises against popular oil ETFs like USO and BNO, citing futures rollover risks and temporary war premiums. Instead, he recommends individual refining stocks such as PSX and DINO, anticipating strong sales and earnings due to a structural refining bottleneck expected by 2026.
Amidst U.S.-Iran conflict volatility, Louis Navellier is shifting focus from broad commodity ETFs to specific energy stocks. He argues that ETFs like USO and BNO carry significant futures rollover risks and that the 'war premium' on crude prices is temporary. Instead, he highlights refiners like PSX and DINO, which are poised to benefit from a structural refining bottleneck and high margins, especially with 10% of global refining capacity currently offline. This suggests a long-term opportunity in downstream energy players, while short-term traders might consider avoiding or shorting oil ETFs if geopolitical tensions de-escalate.