3 Oil Stocks to Buy Before the Middle East Spark

Industry Overview - Tensions in the Middle East are escalating, impacting oil prices and creating investment opportunities in oil stocks [1] - OPEC+ production cuts and sanctions on major oil producers like Russia and Venezuela are expected to keep oil prices elevated [1] Plains All American Pipeline (PAA) - PAA is a master limited partnership involved in crude oil transportation in the U.S. and Canada, with activities including pipeline transport, marketing, and storage [2] - The stock has shown strong performance due to America's industrial boom and a shift towards reducing foreign oil dependence [2] - PAA has a forward P/E of 14 and a high dividend yield of 7%, with a total estimated CapEx for 2024 at $600 million and EBITDA of approximately $2.75 billion [3] Dynagas LNG Partners LP (DLNG) - DLNG specializes in transporting liquefied natural gas (LNG) globally, operating a fleet of six LNG carriers with a capacity nearing 1 million cubic meters [4][5] - The company has appreciated 25% year-to-date, trading at 2.7 times forward earnings, with potential for further upside due to steady profits and debt reduction [5] Ardmore Shipping Corporation (ASC) - ASC focuses on the seaborne transportation of refined oil products and chemicals, operating a fleet of 22 owned and four chartered vessels [6] - The company benefits from increased shipping expenses due to Middle East tensions, particularly in critical chokepoints [6] - Despite a 370% increase since 2022, ASC has a forward dividend yield of 5.7% and trades at only 5 times forward earnings, with strong margins of 29.5% [7]