When it comes to commodity and natural resource producers, your shares live and die by the underlying price of what you produce. For energy stocks, it meant that last year wasn’t so stellar. After surging along with inflation, prices for oil and natural gas spent much of 2023 declining, which hit shares hard.
However, this year could be the time for energy stocks to shine once again.
Inflation has been stubbornly high, and prices for fossil fuels continue to rise. Cash flows haven’t been better and a new wave of M&A deals – including some major buyouts – has just gotten started. All of this could mean that energy equities are back on the table. For investors, the time to buy could be now.