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Cheap Oil Stocks Lure Investors Even in an ESG-Conscious World

  • Valuations, payouts, higher prices boost Big Oil appeal
  • European oil stocks underperform again on growth concern
Fuel Tanker-Truck Driver Shortage As Summer Demand Rises
Photographer: George Frey/Bloomberg

Europe’s oil stocks may not be the most obvious picks in an ESG-conscious world, but some investors can’t get enough of them.

They’re cheap, pay big dividends and have benefited from a recovery in oil prices. That’s an attractive combination for investors who are nervous that the broader market is overvalued after the relentless rally from the pandemic bottom last year. As an added kicker, many crude producers are plowing cash into renewable energy, helping to blunt criticisms that they’re contributing to climate change.