This month commenced with U.S. crude oil prices soaring by 5.4% to $116.57 per barrel, the highest price since 2008. Since then, oil prices have shown a downtrend on Russia and Ukraine's ceasefire talks. However, oil prices continue to hover above-normal levels and might soar to a fresh high on a further deepening of the global supply crunch. Experts expect oil prices to remain high in the near future. Bjørnar Tonhaugen, head of oil markets at Rystad Energy, said, "I wouldn't rule out $200 a barrel just yet. It's too soon."
Thus, oil and gas stocks could witness significant investor attention in the near term. Investors’ interest in this space is already evident in the VanEck Vectors Oil Refiners ETF’s (CRAK) 2.8% year-to-date returns versus SPDR S&P 500 ETF Trust (SPY) 8.3% decline.
