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Oil Stocks Catching Up With Crude Oil Rally

Published 14/05/2018, 14:45
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Investing.com - The long awaited rally in oil stocks has finally arrived.
The popular SPDR S&P energy exchange traded fund is up 16% in the past month and 9% for the year, as stocks finally catch up with the year-long rebound in the crude oil market. Suddenly, the oil sector is outperforming the broader market, rather than vice versa.
The oil sector rally has been broad-based, lifting production and refining companies as well as equipment and service ones.
Even industry giant Exxon Mobil (NYSE:XOM), whose stock has slumped for much of the past year, is up 7% in the past month.
The rally in stocks is reflected in the sector's most recent earnings, which almost doubled from a year ago. Profits have been driven by booming U.S. shale oil production and the strong global economy. 

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