Stock prices for energy companies are rising as oil prices top $70 a barrel, a stark contrast to six weeks ago when they were among the worst performing groups in the market.
Energy stocks fell out of favor in 2014 when oil prices sank from more than $100 a barrel to less than $30, but they’re now among this year’s top performing sectors, behind technology and consumer discretionary shares, The Wall Street Journal reports.
Even though oil prices looked like they might rebound earlier this year, investors avoided the energy sector and the companies suffered their worst quarter in three years. Fear that Middle East tensions could tank production sharply increased the price of crude oil in the last few weeks, taking share prices up with it.
Energy stocks have risen 10% in the last month, bringing their gains for 2018 up to 2.3%, flip flopping their standing in the market. Petroleum refiner Valero Energy Corp., exploration and production firm Anadarko Petroleum Corp. and Hess Corp. have all surged more than 20% this year, contributing to the overall rise.
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