Energy Sees Boost in Second Quarter
But first-quarter wallop still stings.
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David Meats: The outlook brightened for energy stocks in the second quarter, Morningstar's US Energy Index gained 28% as at the end of March, as compared with a gain of 18% for the Broader US Market Index. And oil prices essentially doubled in the same period. But by and large, the energy sector still looks cheap even after this rally. On supply side, OPEC and its partners have U-turned after kicking off a price war back in March and have now pledged substantial production cuts, collectively withholding almost 10 million barrels a day from the market.
Dave Meats does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.