Energy stocks, largely abandoned by investors this year even as oil prices have bounced back from their lows, finally could be set for a rebound. While the SPDR Energy Select Sector Fund (XLE) is down more than 1% on the year compared to the more than 16% gain of the S&P 500, Dubravko Lakos-Bujas, JPMorgan Chase & Co.’s (JPM) chief U.S. equity strategist, recently laid out five major reasons why oil and gas stocks were ready to surge, according to Business Insider.
One of the surprising things this year has been the failure of energy stocks to rally along with the price of oil. The price of West Texas Intermediate (WTI) fell below $43 a barrel in late December of last year before bouncing back in the first half of 2019. The price now sits about 26% higher than those late-December lows. Meanwhile, energy stocks have basically lost all of the gains they made in the first four months of the year.
But Lakos-Bujas thinks that’s about to change, and here are his five reasons why.
Reabold Resources plc (LON:RBD) is an investor in near-term, high growth upstream oil & gas projects where an injection of its capital facilitates near-term activity. Reabold’s assets include Monroe Swell, West Brentwood & Grizzly Island, in California, US.