Here's Why Oil Prices Are Surging Right Now

By Reuben Gregg Brewer – Mar 10, 2026 at 11:15PM ESTKey PointsOil prices have risen dramatically and fallen dramatically in a very short period of time.Geopolitical conflict is the easy explanation, but long-term investors need to think more deeply about the price swings.The news headlines are filled with moment-by-moment coverage of the current geopolitical conflict in the Middle East. And oil price volatility, as you might expect, has dramatically increased. If you are a long-term investor, you need to consider this issue in a broader context. And that context highlights why most investors should stick with diversified energy industry giants like ExxonMobil (XOM 1.57%) and Chevron (CVX 1.60%). The clear answer isn't the real answer It seems fairly obvious that oil prices have spiked and fallen entirely because of news surrounding the geopolitical conflict in the Middle East. And, to some extent, that is absolutely true. However, before this conflict, there was uncertainty surrounding the unfolding geopolitical events in Venezuela, which came and went. Image source: Getty Images. The reason oil price volatility has become an issue is traders' emotions. As with any market, when fear and greed are at play, prices can go haywire. The current oil price volatility, while shocking in some ways, is actually something investors should expect. It is just how the energy sector works. It is neither good nor bad; it is simply a fact of life that has repeatedly occurred. Prepare for oil volatility with Exxon and Chevron When oil prices rise dramatically, the biggest winners are likely to be pure-play producers. This is because their top- and bottom-lines are entirely driven by oil prices. However, when oil prices fall dramatically, the biggest losers are likely to be pure-play producers for the very same reason. ExpandNYSE: XOMExxonMobilToday's Change(-1.57%) $-2.36Current Price$148.08Key Data PointsMarket Cap$627BDay's Range$147.71 - $150.4152wk Range$97.80 - $159.60Volume974KAvg Vol20MGross Margin21.56%Dividend Yield2.69% If you want to invest in the energy sector for the long term, you should probably own integrated energy giants like Exxon and Chevron. They each have exposure to the upstream (production), the midstream (pipelines), and the downstream (chemicals and refining). Each segment of the industry operates a little differently through the energy cycle. That, in turn, helps to soften the peaks and valleys. Notably, oil is a key input for the downstream segment, so falling prices are usually a net positive. ExpandNYSE: CVXChevronToday's Change(-1.60%) $-3.03Current Price$186.41Key Data PointsMarket Cap$378BDay's Range$185.63 - $189.1652wk Range$132.04 - $192.41Volume609KAvg Vol11MGross Margin14.66%Dividend Yield3.65% On top of that diversification, Exxon and Chevron also have the strongest balance sheets in their peer group. That allows them to take on debt during deep industry downturns so they can continue to support their businesses and dividends until prices recover. When prices recover, as they always have historically, debt is reduced. In short, Exxon and Chevron are built to survive through the industry's ups and downs while rewarding investors for sticking around. Notably, both have increased their dividend annually for decades. This is normal, and you can prepare for it So the reason why oil prices are volatile is the emotional swings that come with geopolitical conflict. They are a normal part of the energy sector and you should be prepared to deal with them as a long-term investor. A good solution is to stick with large, financially strong, and diversified industry-leading companies like Exxon and Chevron.Read NextMar 7, 2026 •By Bram BerkowitzNew CEO Greg Abel Did Not List 2 of Berkshire Hathaway's Largest Equity Positions as "Core Holdings." 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He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedChevronNYSE: CVX$186.41(-1.60%)-$3.03ExxonMobilNYSE: XOM$148.08(-1.57%)-$2.36*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.