It’s still very early days to actually call it a trend. But for at least the last month, energy stocks are actually outperforming oil and gas prices.
That may be temporary. But at least for now, it’s a sharp break from the rule of the past several years. Since oil broke under $100 a barrel back in mid-2014, energy stocks have consistently lagged when oil has jumped. And when the price of the commodity has slipped, they’ve fallen much further and faster.
As a result, energy stocks have finished every mini-cycle of the past six years at lower levels. ExxonMobil’s (NYSE: XOM) March 31 bottom price of $30 and change is its lowest point since 2002.
Oil prices surged earlier this month in anticipation of OPEC+ production agreement. But with a deal in, they’ve once again resumed their slide. Now scraping along around $20 a barrel, North American benchmark WTI Cushing crude is actually at its lowest point since early 2002. And prices at the continent’s other hubs are even lower, including around $10 a barrel in the Bakken and well under that in Canada.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jan. 28, 2021
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor
Founder and Chief Analyst: Capitalist Times and Energy & Income Advisor