Energy Beats the Broader Market for the First Time in Five Years
- Oil and gas stocks have risen faster than oil prices in 2021
- Energy “just spewing out cash right now,” fund manager says
Oil drums stacked in a warehouse at Jacobi Oil Service Inc. in Floyds Knobs, Indiana.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Divesting from oil and gas has been a profitable trade for the last couple of years. Now, for the first time since 2016, investors who held on to energy shares are poised to outperform the broader market.
Oil and gas stocks have been the top market performers across North America even as the world ramps up efforts to curb its reliance on fossil fuels. In New York, the S&P 500 Energy Index has outperformed the broader S&P 500 by 21 percentage points so far this year, with the top performing stock, Devon Energy Corp., gaining a whopping 167%.