Energy stocks power through broader market's January slump

• Published date: 10 February 2022
• Publication title: The China Post

Energy stocks powered through the broader market's January slump and are poised to keep rising as long as oil prices stay high and worries about looming interest rate hikes remain.

Oil companies and firms that provide services to the industry have been a safe bet amid strong demand from the recovering economy and constrained oil supplies. The S and P 500's energy sector is up 25% this year while nearly every other sector fell. The latest gains add to the sector's 47% growth in 2021.

Exxon Mobil, which is up more than 30% for the year, highlighted the industry's strength with its encouraging fourth-quarter financial results. It is among the biggest gainers of the year with fellow energy companies Occidental Petroleum and Hess.

Oil prices are near 7-year highs as OPEC sticks with cautious increases in the amount of oil they send to the global economy even as demand increases. Prices are also getting support over concerns about a potential conflict between Russia and Ukraine.

Crude oil prices will likely remain at their high levels in the coming months, according to the Energy Information Administration. The picture for prices is hazier for the back half of the year. Prices could face more pressure if global oil production rises as consumption slows...