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15 handpicked stocks

Downstream Winners From Falling Oil Prices in 2025

Recent data shows oil prices are dropping due to oversupply and concerns about U.S. demand. This theme identifies companies in sectors like transportation and manufacturing that stand to benefit from lower energy costs.

Author avatar

Han Tan | Market Analyst

Published on September 12

Your Basket's Financial Footprint

Market capitalisation breakdown for the basket 'Downstream Winners From Falling Oil Prices in 2025'.

Key Takeaways for Investors:
  • Large-cap dominance suggests generally lower volatility and more stable performance, likely tracking broad market moves.
  • Suited as a core holding for diversified portfolios rather than a speculative, high-growth allocation.
  • Expect steady long-term value; short-term explosive gains are less likely given concentration in large caps.
Total Market Cap
  • UNP: $134.37B

  • CSX: $66.53B

  • CNI: $59.24B

  • Other

About This Group of Stocks

1

Our Expert Thinking

Recent oil price declines create a unique opportunity for companies where energy is a major cost. Lower fuel expenses can directly translate into reduced operating costs and potentially wider profit margins for businesses in fuel-intensive sectors.

2

What You Need to Know

This group focuses on transportation, manufacturing, and refining companies that benefit from cheaper energy costs. These businesses typically see improved financial performance when oil prices fall, making this a tactical play on commodity cycles.

3

Why These Stocks

Each company was handpicked by professional analysts based on their exposure to energy costs as a primary input. These businesses are positioned to capitalise on margin expansion as fuel expenses decrease, offering potential for improved profitability.

Why You'll Want to Watch These Stocks

Fuel Cost Advantage

Lower oil prices mean reduced operating costs for these energy-intensive businesses. This could translate directly into improved profit margins and stronger financial performance.

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Margin Expansion Opportunity

As fuel expenses drop, these companies may see their profit margins widen significantly. This creates potential for enhanced returns when energy costs are falling.

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Cyclical Sweet Spot

These stocks are positioned to capitalise on the cyclical nature of oil prices. Professional analysts have identified this as a tactical opportunity in the current market environment.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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