Analysis: Sizzling U.S. energy stock rally confronts global growth worries – Reuters

Analysis: Sizzling U.S. energy stock rally confronts global growth worries – Reuters

NEW YORK, June 1 (Reuters) - A scorching rally in U.S. energy shares has left investors facing a tough decision: hold on despite growing worries that global growth will slow or lock in profits in one of the few areas of the stock market that has thrived this year.

The S&P 500 energy sector (.SPNY) has surged 55.7% year-to-date on the back of soaring oil prices, making it a welcome counterweight in portfolios during a year in which the broader S&P 500 (.SPX) has declined by 13.3%. read more

Some individual energy names have delivered returns more typically seen in high-flying technology over the past decade: Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) have gained 57% and 49% year-to-date, respectively, while Occidental Petroleum Corp (OXY.N) has soared about 140%. U.S. crude oil prices have jumped 53% year-to-date, supporting oil and gas shares even as they help spur the steepest inflation in decades. read more