From Bryce Coward, CFA: It’s news to no one that energy has been the worst performing sector year to date with plenty of hatred of the sector to go around.
Yet, as we write the price of WTI crude oil is up about 2% on news of capex cuts and OPEC’s apparent moves to rein in production and exports. Energy stocks are cooperating today as it is the best performing sector across the global developed markets (chart 1). Plenty of upside remains, however, at current oil prices and especially if prices move higher from here.