Energy Stocks Are Outperforming Every Other Sector This Year-Here Are The Winners

Energy Stocks Are Outperforming Every Other Sector This Year-Here Are The Winners

Share to Linkedin Surging oil prices and an expected economic recovery are helping the energy sector post the stock market's biggest gains so far this year after the pandemic crippled the industry in 2020, and experts think an even stronger resurgence is on the horizon. Up nearly 2% Wednesday and outperforming the broader market, the S&P Energy Index has surged almost 27% this year, roughly twice as much as the financial industry's 13. 5% gain, the second biggest among sectors tracked by the S&P 500. The recent uptick has been fueled in part by surging oil prices, which are up nearly 3% Wednesday on decreased supply following a crippling deep freeze in Texas last week that curtailed production and led to dwindling inventories. Such an increase should help bolster the bottom line of energy firms like Marathon Oil and Murphy Oil, which analyst Paul Sankey said earlier this month could get a roughly 10% boost to earnings for every $1 increase in the price of a barrel of oil. Rising inflation concerns are also set to be a boon for energy stocks, Goldman said Monday, reiterating their bullishness for the overall sector and noting that Brent crude oil has risen