Newsletter No. 176
Good afternoon,
Oil prices moved sharply higher this week as renewed Middle East tensions raised concerns about global supply and major shipping routes.
At the same time, AI and data center growth continued to drive demand for electricity, natural gas and new energy infrastructure. Major companies also announced stronger earnings, expanded investments and new deals across oil, LNG, power and natural gas markets.
In this week’s issue of The Upside, we look at what these developments could mean for energy prices, U.S. production and future investment opportunities.
This Week's Headlines
Oil and Gas News
- Oil Prices Jump as Middle East Tensions Rise
- Glencore Trading Profit Jumps as Oil Markets Swing
- Texas AI Data Center Construction Begins
What's Happening at King
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Oil, Inflation and the 2026 Economy with Peter Boockvar on The Jay Young Show
- Oil & Gas Rundown LIVE! If you Missed It
Energy Market Perspective
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AI Is Reshaping the Energy Investment Landscape
Move to Watch
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Expand Energy Expands Its Natural Gas Reach
Oil and Gas News
Oil Prices Jump as Middle East Tensions Rise
Oil prices rose more than 7% Wednesday because of growing conflict between the U.S. and Iran and new threats to ships carrying oil through the Middle East.
WTI climbed above $84 per barrel, while Brent reached about $90. President Trump warned that the U.S. would respond strongly after an attack on an American base in Jordan. Iran-backed Houthi forces also threatened to charge fees or limit ships traveling through the Bab el-Mandeb Strait, a major route for global oil shipments.
Higher oil prices could increase gas prices and inflation, making the Federal Reserve’s upcoming interest-rate decision more difficult.
Glencore Trading Profit Jumps as Oil Markets Swing
Glencore expects to earn about $3.3 billion from commodity trading during the first half of 2026 as the Iran war caused major swings in oil and energy prices.
That six-month profit is already higher than the company’s trading profit for all of 2025. Glencore benefits from market volatility because its traders buy, sell and move oil, natural gas and other commodities as prices and supply routes change.
For a U.S. audience, the results show how geopolitical conflict can create major profit opportunities for large energy traders, even while higher oil prices increase uncertainty for consumers and businesses.
Texas AI Data Center Construction Begins
Energy Vault has started building a new AI data center campus in Snyder, Texas, to meet growing demand for computing power.
The first phase will provide 8 megawatts of capacity and could expand to 25 megawatts. The site is expected to begin operating in early 2027, with the full campus designed to eventually support up to 500 megawatts.
The project will use modular data centers from Crusoe that can be installed in weeks instead of years. Work is already underway on power systems, fiber connections, battery storage and site preparation.
The development highlights the rapid growth of AI infrastructure in Texas and the increasing need for reliable electricity, energy storage and faster data center construction.
Happening at King
Don't Miss this Oil & Gas Rundown LIVE from the Field!
Join us live every Wednesday at 2 p.m. CT for Oil & Gas Rundown LIVE, where we break down the latest headlines, market moves, and industry developments shaping oil and gas in real time. It’s a chance to stay current on up-to-the-minute energy news, hear sharp insights on what matters most, and get a clearer view of where the market may be headed. Whether you follow the industry closely or just want a smart, timely update each week, this is a conversation you won’t want to miss.
YouTube: @JayRYoungOfficial
LinkedIn: jayr-young
Energy Market Perspective
AI Is Reshaping the Energy Investment Landscape
The rapid growth of artificial intelligence is creating a new source of electricity demand that could reshape energy markets for years. FirstEnergy now has 6.4 gigawatts of contracted data center demand, up 30% in one quarter, showing how quickly large technology companies are seeking reliable power.
For RIAs and financial advisors, the investment story extends well beyond data center operators and semiconductor companies. Utilities, natural gas producers, pipelines, power generators, transmission providers and energy infrastructure companies may all benefit from the buildout required to support AI.
FirstEnergy plans to invest $36 billion over five years to modernize the electric grid and add transmission capacity. Similar investments will likely be needed across the country as data centers require enormous amounts of dependable, around-the-clock electricity.
This demand is arriving during a period of geopolitical uncertainty, supply chain concerns and growing focus on U.S. energy security. Renewable power will remain part of the solution, but the need for dependable electricity may also increase the importance of natural gas, nuclear energy, battery storage and upgraded grid infrastructure.
For investors, AI is becoming more than a technology trend. It is also an energy and infrastructure story. The potential opportunity includes regulated utilities with expanding rate bases, natural gas companies serving power demand and businesses that build, manage and protect the electric grid.
The trend is clear. AI is increasing electricity demand at a time when the U.S. grid already requires major investment, creating potential long-term opportunities across the energy value chain.
Learn More about how King Operating Corporation is helping develop the energy America needs for the future.
Move to Watch
Expand Energy Expands Its Natural Gas Reach
Expand Energy is buying Twin Eagle Holdings for $1.25 billion to strengthen how it sells and delivers natural gas across the U.S. and Canada.
Expand is already the largest natural gas producer in North America. Twin Eagle adds a large marketing network, transportation access, storage capacity and relationships with more than 1,000 customers.
Together, the companies will market about 14 billion cubic feet of natural gas per day and reach roughly 90% of the U.S. and Canadian market. Expand expects the deal to help generate about $750 million in additional annual free cash flow.
The acquisition moves Expand closer to becoming a fully integrated natural gas company that controls more of the process from production to customer delivery.
If you'd like to talk to someone about King and are an accredited investor, you can fill out your information here or schedule a Zoom conversation with one of our SVPs here and someone will reach out.
All the best,
Jay
