Industry Overview - Oil prices have been trending lower throughout the year but have recently surged nearly 10% due to new US sanctions on Russian oil exports, affecting major buyers like India and China [1][2] - The escalation in oil prices has sparked a rebound in the energy sector, with companies like Par Pacific and Exxon Mobil showing strong price action and healthy cash flows [2] Exxon Mobil - Exxon Mobil is positioned for a major breakout, with a strong technical setup despite not currently experiencing upward earnings estimate revisions [4] - The company has a free cash flow yield of approximately 6.9%, significantly above its 10-year median of 4.8%, allowing it to fund dividends, repurchase shares, and invest in new projects while maintaining a strong balance sheet [5] - The stock price has been consolidating within a broad trading range for over two years, forming a bull flag pattern, and is currently testing the $117 resistance level [6][7] Par Pacific - Par Pacific has experienced a turnaround in sentiment with upward earnings revisions, earning a Zacks Rank 1 (Strong Buy) rating, with analyst estimates increasing by +249% for the next quarter and +113% for the current year [9] - The stock has been coiling within a bullish momentum pattern, and a recent breakout has confirmed the bullish setup that had been developing [10] - Despite the recent surge, Par Pacific remains attractively valued at 10.4x forward earnings, with potential for further upside due to improving fundamentals and favorable industry trends [11] Investment Outlook - The energy sector is showing signs of recovery after nearly two years of sluggish performance, driven by rebounding oil prices, easing financial conditions, and resilient global demand [14] - Exxon Mobil offers a stable investment with strong free cash flow and reliable dividends, while Par Pacific presents higher volatility and return potential, making them complementary options for investors [15]