STOCKS | U.S. Oil and Gas Stocks Surge, Analysts Predict Bullish Year

U.S. oil and gas stocks have experienced significant gains since the beginning of the year, with analysts viewing this as a bullish signal for the entire year. According to Jin10, despite a temporary pause in the rally due to a broad decline in U.S. stock markets on Thursday and various uncertainties such as economic, geopolitical, and artificial intelligence impacts, historical patterns suggest that a strong start often leads to a robust finish. The S&P 500 energy sector has risen approximately 21% year-to-date, leading all sectors and marking the second-strongest start since 1990, only behind 2022 when the global economic recovery post-pandemic drove oil prices higher. Data from Bespoke Investment Group indicates that in the previous three instances where the sector gained 10% from the start of the year to mid-February, it continued to rise at least 15% for the remainder of the year. DataTrek Research strategists have analyzed the energy sector's performance relative to the S&P 500, reaching similar conclusions. Their data shows that since 2015, the energy index has outperformed the S&P 500 by at least 20.9 percentage points over a 50-day period seven times, maintaining its advantage in each subsequent 50-day period.