Oil stocks are ripping right now.
But this one hasn’t (yet)…
When energy supply is threatened, money floods into the sector.
It’s a prehistoric trade on Wall Street.
And what do you know: after a few days of conflict in Iran, traders are already piling in.
- WTI crude oil prices surged 19% since the first strikes.
- Battalion Oil Corp (AMEX: BATL), a U.S. oil producer, spiked 430%.
- Energy stocks across the board are surging violently.
But when I scan the sector, something sticks out like a crooked card in a poker deck.
One of the biggest oil companies on earth is doing… exactly the opposite.
While the rest of the sector blasts off, this stock is slowly fading lower.
Now I’m paying attention…
When the macro story is screaming gains and the chart moves in the opposite direction, it usually means one thing:
The stock is mispriced.
This move hasn’t even started yet…
The Stock That Should Be Running
When the Strait of Hormuz shuts down, and a third of the world’s seaborne oil exports are choked off, every remaining oil producer and oilfield services company on the planet becomes more valuable overnight.
As the war stretches on, their value increases.
The market is currently repricing for an oil-constrained reality almost everywhere.
Almost…
There’s one major oil services company quietly drifting lower while the rest of the sector surges.
The price action makes no sense given the macro backdrop. Supply fears are accelerating, and yet this stock keeps fading.
This is an undeniable setup.
Counter-trend shakeouts like this can happen before big rallies.
Weak hands get flushed out. The stock looks broken. Then the underlying catalyst reasserts itself, and the price catches up. Fast.
That’s exactly what’s forming here…
The Oil Stock That’s Late to the Game
The company is SLB Limited (NYSE: SLB).
It’s recognized as the world’s largest oilfield services company, formerly known as Schlumberger.
When oil supply is disrupted at this scale, demand for the drilling equipment and the expertise that SLB provides ramps up.
This company directly benefits from the oil supply disruption in the Middle East.
And yet, the stock is trading 10% below pre-war levels.
It should be pushing higher alongside the rest of the energy sector.
Instead, it’s pulling back. But that pullback is getting exhausted.
Here’s SLB’s recent price action as it fades below the 52-week highs:
I’m using Call options to position for a trend reversal.
Specifically: SLB Calls that expire 3/13/26.
That way, we have a few days for the stock to find its footing and rally.
Given the wartime backdrop and where the rest of the energy sector is trading, I think that’s a realistic probability.
I’m not chasing names like BATL that already spiked +400%. I’m finding ones that haven’t moved yet. That’s where the edge is.
If SLB stops making sense, I’m out. But right now, the chart and macro catalyst are aligned.
Those are the strongest setups in the market.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
