Don’t look now, but energy stocks are starting to look like compelling investments once again. While crude oil prices have been under pressure, natural gas prices are up over 70% year-over-year—and over 50% in the last three months.
Several catalysts are driving this rally. First, the United States had an early blast of winter weather, driving seasonal heating demand. Second, liquefied natural gas (LNG) exports to Europe remain strong amid ongoing concerns that Russia may cut supply. Third, and most notably, the artificial intelligence (AI) buildout is providing a tailwind for energy prices for years to come.
