Brent crude oil has crossed $120/barrel for the first time since June 2022. The IEA is calling this the “biggest energy security threat in history.”

Brent crude has crossed $120/bbl, a level not seen since mid-2022, and the IEA warns of the worst energy security threat ever. Such a pronounced price spike and systemic warning suggest further upside momentum as supply constraints (e.g., OPEC+ cuts, geopolitical tensions) persist. Long USO to capture continued crude price appreciation during what the author calls the biggest oil crisis in decades. Unexpected demand destruction, recession fears, or rapid policy intervention (e.g., SPR releases, ceasefire deals) could cap or reverse prices.

The oil crisis narrative directly benefits integrated energy companies and producers that thrive in a high-price environment. XLE includes majors (XOM, CVX) and E&P firms that will see expanding margins and cash flows as Brent stays above $120. Long XLE as a diversified bet on the energy sector rallying on the back of the “biggest energy security threat in history.” Sector rotation, regulatory crackdowns, or a sudden oil price collapse from a global recession.