June 10, 2026
Central Banks Are Not Chase SpaceX. Ask Yourself Why.
Featured – Traditional Energy: XOM and the Crude Reality
Dear Reader,
The SpaceX IPO is going to be the most hyped financial event of 2026.
Your inbox is already flooded. Every newsletter in America is selling you access codes, backdoor allocations, and pre-IPO plays.
Here is the question none of them are asking:
What are the largest financial institutions actually doing with their own reserves?
Not what they are selling you. What they are holding.
For three consecutive years, the world’s central banks have been buying gold at record levels. Eight hundred and fifty tons last year alone.
These are not retail investors chasing a hot trade. These are the same institutions managing the global financial system. The ones that set the rules. The ones whose hands are on the machinery your savings sit inside.
They are not buying SpaceX allocations.
They are buying the one asset that exists outside the system they built and control.
Physical gold cannot be rebalanced by a fund manager. No IPO frenzy touches it. No institution stands between you and it. It holds what you put into it.
That is exactly what the institutions buying it already know.
The free 2026 Gold Guide explains the same move they are making and how to do it with a portion of your savings, tax-free and penalty-free, in days.
While Wall Street points every eye at SpaceX, the institutions are doing something else entirely.
Now you know what it is.
Traditional Energy: XOM and the Crude Reality
Oil is not a trade right now. It is a condition.
WTI crude opened this session around $91 per barrel before pulling back toward the high $80s as ceasefire talk between the US and Iran generated some relief selling. But here is what matters: the Strait of Hormuz remains effectively closed under a dual blockade. Roughly one-fifth of global seaborne oil normally transits that chokepoint. That disruption is not a headline risk anymore. It is a structural supply constraint that has been in place since early March, and it is still not resolved.
The IEA has called this the largest supply disruption in the history of the global oil market. That framing is not hyperbole. It is a data point. And for upstream producers insulated from Middle East logistics, it translates directly into higher realized prices per barrel.
Dividend Expert Reveals His Biggest Income Secrets… Free of Charge
Marc Lichtenfeld – Author of the best-selling book Get Rich With Dividends – is giving away his Ultimate Dividend Package…
Free of charge!
What the XOM Numbers Actually Show
ExxonMobil reported Q1 2026 adjusted EPS of $1.16, beating consensus estimates of roughly $1.02 by nearly 14%. GAAP earnings came in at $4.2 billion, or $1.00 per diluted share. Strip out unfavorable timing effects tied to mark-to-market derivative requirements, and the underlying number was $8.8 billion, or $2.09 per share. That gap is large. It is also temporary by design.
Upstream earnings excluding identified items and timing effects hit $6.3 billion for the quarter. Net production reached 4.6 million barrels of oil equivalent per day. Guyana set a quarterly record above 900,000 gross barrels per day. The Permian continued its volume ramp. These are not flukes. They are the result of capital allocation decisions made years earlier, now producing cash in an environment where realized crude prices are elevated.
Slight tangent, but it is worth noting: ExxonMobil’s Golden Pass LNG Train 1 shipped its first cargo in Q1. That adds another revenue stream that is entirely domestic in origin and unaffected by Hormuz logistics. The diversification is real.
The Q2 2026 EPS estimate currently sits at $3.76 per share, with the next earnings call scheduled for July 31. The buyback authorization remains at $20 billion for the year. The Q2 dividend was declared at $1.03 per share, payable today. Cash flow from operations in Q1 was $8.7 billion.
THE FOURTH SIGNAL JUST FIRED
Three chokepoint calls. +568%. +1,754%. +724%. Three different decades. Three different industries. One pattern. The fourth signal just fired inside the S&P 500.
The Macro Case Is Simple
Rising energy input costs flow through to inflation broadly. Upstream producers capture that inflation as margin expansion rather than absorb it as cost pressure. That asymmetry is the core of the XOM hedge argument. Analysts have flagged that persistent Hormuz disruption could add roughly 0.8% to global inflation. If that plays out, the Fed’s rate path gets complicated. Equities with genuine commodity exposure become the natural beneficiary of that scenario.
This is not about geopolitical speculation. It is about where the cash flow goes when oil stays above $90.
For traders positioning around sustained elevated crude, a defined-risk structure on XOM with a bullish bias would be consistent with the current macro environment. If you believe the Strait remains constrained through Q2 and WTI holds above $85, the upstream earnings trajectory supports higher realized EPS estimates than the street currently models. If a ceasefire fully materializes and oil falls sharply, that thesis breaks. Size accordingly.
- WTI crude: ~$88-91 range today, 52-week high of $117.63
- XOM Q1 2026 adjusted EPS: $1.16 vs. $1.02 estimate (+13.7%)
- XOM upstream earnings ex-timing effects: $6.3 billion
- Net production: 4.6 million boe/d; Guyana record above 900K bpd
- Q2 2026 EPS consensus estimate: $3.76 (reports July 31)
- 2026 buyback program: $20 billion authorized and on pace
- Key risk: ceasefire resolution reopening Strait of Hormuz and oil price reversal
The situation in the Strait could shift fast. It almost did last weekend. Watch the diplomatic calendar as closely as the crude chart.
