Oil prices and energy stocks are headed in different directions. What gives?
Live MintWhile recent hopes that inflation has peaked sparked sharp gains in stocks and bonds, oil prices just bounced off their 2022 lows, hit by worries about slowing global growth eating into demand for fuel. The divide is especially stark between oil prices and shares of energy producers—the stock market’s brightest performers in a tough year. But some analysts also view lower oil prices as a sign of a slowing economy—and bad news for the broader stock market’s prospects. The S&P 500 energy sector rose 26.8% over the next year while oil prices surged 69%, said Paul Hickey, co-founder of Bespoke. U.S. crude prices have hovered near their 2022 lows despite Chinese oil imports rising for four consecutive months since stringent second-quarter lockdowns, according to commodity analytics firm Kpler.
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Oil price hike clouds corporate profit outlook, putting investors on edge; energy sector will benefit but others to see eroding margins
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