Energy Stocks Climb As Oil Prices Shoot To New 2023 High—And Banks Say There’s More Room To Grow

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Both JPMorgan and Morgan Stanley named energy stocks as among their top plays.

Crude oil prices set another 2023 high Monday, surging upwards alongside energy stocks, which are gaining increasingly loud backing among market strategists.International benchmark Brent crude and U.S. benchmark West Texas Intermediate futures each hit their highest levels since November trading at $94 and $91 per barrel, respectively.Similarly rising are energy companies poised to deliver strong profits should demand for oil remain strong; the S&P 500’s energy sector rose 0.

Both JPMorgan and Morgan Stanley predicted the energy sector Monday will outperform other equities moving forward. JPMorgan strategists led by Marko Kolanovic explained they’re bullish on energy because investors have yet to properly allocate resources toward the asset class despite the surge in commodity prices.

A Michael Wilson-led Morgan Stanley group similarly cited a broad lack of exposure to the sector, pointing to energy companies’ strong financials compared to peers and expressing conviction that both oil demand and crude prices will remain robust.Four of the eight best performers on the S&P over the last month are commodity companies, according to FactSet data.How high oil prices can go. It “sure looks like” oil will surpass $100 per barrel, Chevron CEO Mike Wirth predicted Monday in an14%.

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