Quarter-End Insights

Energy: A Drop in Oil Prices Has Made Energy Stocks More Attractive

Jeffrey Stafford, CFA

After outperforming the broader market for most of 2018, the Morningstar Global Energy Index dropped 22% in the fourth quarter through Dec. 20. (Exhibit 1), owing to the steep drop in oil prices that began in October.

Exhibit 1: Global energy index vs. global equity index

Jeffrey Stafford, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.