The energy sector is undergoing a remarkable transformation in 2024, with three energy stocks shining among the top 10 performers in the S&P 500 index amid a backdrop of soaring oil prices.
The surge in energy stocks is a stark deviation from the lackluster performance witnessed in 2023, signaling a newfound vigor within the sector.
One of the primary drivers behind this outperformance is the substantial uptick in oil prices, notably the 20% year-to-date increase in the West Texas Intermediate (WTI) light crude, monitored through the United States Oil Fund (USO).
Multiple factors contribute to this upward trajectory, including heightened global demand, constrained OPEC+ supply, and geopolitical tensions, particularly in the volatile Middle East region.
The latest forecast from the U.S. Energy Information Administration (EIA) anticipates the Brent crude oil spot price to average $90 per barrel in the second quarter of 2024, reflecting a $2 increment from previous estimates.
Furthermore, the EIA projects an average oil price of $89 per barrel for 2024, driven by expectations of substantial global inventory depletions during the quarter and ongoing geopolitical uncertainties.
In parallel, the retail gasoline price is set to hit an average of $3.60 per gallon in 2024, up from the previous forecast of $3.50 per gallon.
As of April 9, 2024, the EnergySelect Sector SPDR Fund (XLE) has surged by 16% year-to-date, outstripping all other sectors within the S&P 500 index.
| Name | Price Change % (YTD) | Sector |
| Super Micro Computer, Inc. SMCI | 215.81% | Information Technology |
| NVIDIA Corporation NVDA | 70.28% | Information Technology |
| Constellation Energy Corporation CEG | 59.83% | Utilities |
| Meta Platforms, Inc. META | 44.88% | Communication Services |
| Marathon Petroleum Corporation MPC | 42.65% | Energy |
| Micron Technology, Inc. MU | 42.55% | Information Technology |
| NRG Energy, Inc. NRG | 39.77% | Utilities |
| Western Digital Corporation WDC | 38.09% | Information Technology |
| Valero Energy Corporation VLO | 36.10% | Energy |
| Diamondback Energy, Inc. FANG | 32.23% | Energy |
Stay tuned for the upcoming earnings reports from various large-cap U.S. energy companies for the first quarter of 2024 as the sector continues to captivate investors’ attention:
- Friday, Apr. 12, 2024: Kinder Morgan Inc. KMI
- Friday, Apr. 19, 2024: Schlumberger N.V. SLB, Woodside Energy Group ADR WDS
- Tuesday, Apr. 23, 2024: Halliburton Company HAL
- Wednesday, Apr. 24, 2024: Cenovus Energy Inc CVE, EQT Corp. EQT
- Thursday, Apr. 25, 2024: Valero Energy, Hess Corp. HES
- Friday, Apr. 26, 2024: Exxon Mobil Corp. XOM, Chevron Corp. CVX, Phillips 66 PSX, Imperial Oil Ltd IMO
- Tuesday, Apr. 30, 2024: Marathon Petroleum, ONEOK Inc OKE, MPLX LP MPLX, Diamondback, Cameco Corp. CCJ
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