Should I buy FTSE 100 shares BP or Rolls-Royce for my ISA in July?
Im currently on the lookout for top FTSE 100 stocks to buy this July. Oil prices have risen strongly over the course of June on signs of tightening supplies. Theyre up more than five-and-a-half bucks from $70 per barrel at the start of the month. And theyve just touched their most expensive since October 2018. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential...  Prices of the black stuff are rising as soaring demand drains fuel inventories. But Im not convinced that oil will keep booming in a blow to profits at FTSE 100 firms BP and Royal Dutch Shell. Its a matter of time before US shale producers plug their hardware back into the ground en masse to ride the economic recovery. OPEC+ producers will also be increasingly eager to end their supply curbs to make money from the rising commodity price. I also worry about the future of Big Oil as demand for green energy takes off. BP has been making serious moves to bulk up its position in the renewables market more recently. And the Footsie firm has the clout to keep increasing its exposure here to deliver big long-term profits. But BP still has a mountain to climb to transition away from oil and make a splash with green energy. Id rather buy pure-play renewable stocks to ride this theme. Im not tempted to invest in FTSE 100 engineer Rolls-Royce (LSE: RR) next month either. The Covid-19 crisis is far from over and this continues to cast a pall over UK airline stocks and the companies that help them take to the skies. Rolls-Royce said in May that large engine flying hours were around 40% of pre-coronavirus levels during in the four months to April. This is basically unchanged since the end of 2020 as lawmakers keep travel barriers up despite mass vaccinations. This stagnation is especially troubling given the huge amounts of debt Rolls-Royce has on its books. Net debt stood at 3.6bn in December. I think the engine builder might tap investors for more cash or accrue more debt just to survive. Now its true that a bright long-term outlook for the aviation sector could mean big profits for Rolls-Royce in the years ahead. Mordor Intelligence reckons the commercial aircraft market will grow from $85.3bn last year to $194.5bn in 2026, driven by soaring air traffic in Asia Pacific. But in my opinion the near-term risks to Rolls-Royce far outweigh the possible rewards over a longer time horizon. This is why I wont be buying the engineer or its FTSE 100 colleague BP.