Exxon, Chevron: Powerful Rebound Set To Continue – Investing.com

Exxon, Chevron: Powerful Rebound Set To Continue – Investing.com

After taking a severe blow last year in the middle of the global pandemic, and stocks are roaring back.

The Vanguard Energy Index Fund ETF Shares (NYSE:)—whose top 10 holdings include Exxon Mobil (NYSE:), Chevron (NYSE:) and Phillips 66 (NYSE:)—has massively outperformed the this year. It's surged 49% compared with the benchmark stock index, which has gained just over 12%.

This powerful rebound—in one of the worst sectors of the market last year—comes amid very strong signs that the economic reopening in the U.S. and other economies will continue to fuel demand for energy products, bolstering the financial situation of some of the largest oil companies.

The U.S. economy, after a successful vaccine drive, was close to its pre-pandemic size by the end of the first-quarter, and economists expect growth to pick up further in the current quarter. closed on Friday at a two-year high, while WTI crude rose to levels not seen since October of 2018.

The cartel of oil producing nations, known as OPEC+ group, said this past week in their forecast that oil demand would jump by six million barrels a day in the second half. As a result, global oil stocks