US Energy Sector Specialist Commentary

This report covers the impact of escalating Middle East conflicts on energy markets, the historic drawdown in cyclical vs. defensive equities, and updates on JP Morgan's coverage of energy and mining stocks.

Key Takeaways

• 1.Geopolitical escalation in the Middle East, specifically Israel-Iran conflict and Houthi threats to Red Sea navigation, are driving energy market risks and volatility.
• 2.The spread between cyclicals and defensives in equities experienced its largest drawdown in 14 years on the Friday before this report.
• 3.JPM initiated coverage on Fervo Energy (FRVO) and EagleRock Land (EROK) as Overweight, highlighting thematic growth in geothermal and Permian land management respectively.

Table of Contents

• Key Highlights Today
• Access, Calls & Surveys
• Detailed Commentary (Spec View)
• Metals & Mining Buyside Sentiment Survey
• China Activity Tracker
• We Re-Initiate on DVN @ OW
• We Initiate FRVO @ OW & Add to AFL
• We Initiate EROK @ OW
• Sector News & Headlines
• Oil & Gas
• Utilities & Midstream Research
• Metals & Mining
• Clean Energy, Power Infrastructure and Sustainable Investing Research
• Commodity Moves & JPM Forecasts
• Performance by Subgroup (T-1 Close)
• Sector Research (Weekly Pieces)
• Commodity Research
• Global Oil & Gas, Metals & Mining, Clean Energy Research
• Key Macro Research
• Energy Events Calendar
• Energy Expert Access