Energy stocks led the way during last year’s bear market, surging in conjunction with Russia’s invasion of Ukraine that upended global energy markets. Many energy companies have since underperformed this year, dragged lower by declining earnings as global markets stabilized. Still, West Texas Intermediate (WTI) crude oil futures are currently testing $90/barrel on a tighter supply outlook. Many analysts expect a move higher in the coming months.
It comes as no surprise then that the energy sector has come back into focus in recent months, earning the top spot as the best performer over the last 1-month and 3-month periods. The Organization of the Petroleum Exporting Countries (OPEC) recently reiterated its forecasts for robust growth in global oil demand this year and next, citing the resilience of energy demand in major economies.
The optimism has sent crude oil prices to a 10-month high, bolstering a host of energy stocks as well.
This post originally appeared at 24/7 Wall St.