Oil Stocks Are Up While Oil Prices Slump. Here’s Why.

view original post

Oil stocks are far outpacing the price of oil so far this year, continuing a trend that started in 2022. The trend bodes well for energy investors, who have previously seen dramatic busts when oil prices cratered. 

Brent crude

the international benchmark, is down 7.3% this year, settling on Monday at $79.65 per barrel.

West Texas Intermediate

the U.S. benchmark, is down 7% to $74.63. But the

Energy Select Sector SPDR Fund

(XLE) is up 3.3% this year. And the

SPDR S&P Oil & Gas Exploration & Production ETF

(XOP) is up 3.5%.

Exxon Mobil

(XOM) has risen 1.8%, while some shale-producers are doing even better.

Diamondback Energy

(FANG) is up 7.5%.