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 May. 28, 2020
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