XOP - VDE: Energy Stocks Stuck In Neutral As Oil Prices Wobble In The $70s
2024-02-09 15:22:24 ET
Summary
- Oil prices remain quiet despite geopolitical concerns and oversupply fears.
- Weak oil and gas prices have been a headwind for the low-P/E Energy sector despite the group of stocks boasting a high total shareholder yield, above 8%.
- I have a hold rating on the Vanguard Energy Index Fund ETF (VDE) due to modest momentum and concerning seasonal trends.
- I outline key spots investors can consider getting long and booking profits ahead of a bearish seasonal stretch.
Oil prices have been conspicuously quiet over the past few months despite ongoing geopolitical jitters both in the Red Sea and further into the Middle East. Bearish fears regarding the high amount of global oil supply appear to be the primary reason for such lackluster price action in both domestic WTI and global Brent crude futures. Growth fears in China don't help the supply/demand balance as far as energy bulls are concerned, either....
VDE: Energy Stocks Stuck In Neutral As Oil Prices Wobble In The $70s