Fuel Shortages Could Hit This Summer and Oil Execs Say Recovery Is Months Away. 3 Stocks to Own While It Lasts.

The world is still highly reliant on oil and natural gas despite the global effort to go green. The geopolitical conflict in the Middle East has left the world short 1 billion barrels of oil, according to Shell (NYSE: SHEL) CEO Wael Sawan. And the CEO believes a recovery will take months. Both estimates are backed by other industry executives.

High energy prices look set to stay for a while. And, if the conflict drags on, it could get worse. This trio of energy stocks could benefit from the global fuel shortages.

Image source: Getty Images.

Play the long game with Shell or its peers

Elevated energy prices will help all companies that produce oil and natural gas. Shell is an integrated energy giant, like ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX). So they all produce oil, transport it, and refine it. They will all benefit from high oil prices. Chevron, however, is probably the best option, as its 3.9% yield tops those of both Shell and Exxon. Plus, Chevron has increased its dividend annually for decades, showing it can navigate the entire energy cycle while continuing to reward investors. It is a relatively conservative way to play high oil prices, since long-term investors have to accept that energy prices will eventually fall.

Go direct, but out of the conflict region

A more direct beneficiary of high oil prices will be companies that only produce oil and natural gas, such as Diamondback Energy (NASDAQ: FANG) and Devon Energy (NYSE: DVN). As an added bonus, both of these upstream energy companies are U.S.-focused, so the conflict in the Middle East won't affect their production. Both companies estimate that $90 per barrel oil will support free cash flow yields of 15%, with Devon estimating that $110 oil will increase its yield to 21%.

The opportunity and risk with companies like Diamondback and Devon is that they tend to move more dramatically in response to energy prices than integrated energy giants do. They are both well-run upstream businesses that have proven that they can survive the industry's inherent swings. However, their stocks have already risen materially, each up about 25% so far in 2026 as of this writing, so there is material downside risk if energy prices decline. When the conflict in the Middle East ends, you'll want to be ready to act if you are simply looking for a short-term trade.

Energy markets are volatile by nature

The big takeaway is that the conflict in the Middle East is worrying, but it hasn't changed the basic nature of the energy sector. Volatility is the norm. If you want to lean into that volatility, U.S. producers like Diamondback and Devon are probably good choices. If you have a long-term approach, a more diversified industry giant like Chevron will likely be a better option.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.