President Trump’s decision to pull out of the Iran nuclear weapons deal has been controversial among foreign policy experts.
And the move has been felt keenly in the oil markets.
The price of a barrel of Brent crude, a key oil price benchmark, has eclipsed the $70 mark this year.
Oil Patch
Investors also seem to have regained their enthusiasm for energy stocks.
The Vanguard Energy ETF (VDE) has rallied in recent trading sessions and is up about 8% on the year through May 15.
Interactive Brokers Asset Management portfolio manager Charles Sizemore thinks oil and gas master limited partnerships are worth a look.
“For a blue-chip MLP play, consider Enterprise Products Partners LP (EPD). Enterprise Products, in my view, is one of the oldest and best-respected MLPs you’re ever going to find.”
Sector Rebound
Bespoke Investment Group, meanwhile, notes that energy stocks as a group are rebounding from years of relative underperformance.
The sector, according to Bespoke, has been on a tear in recent months and is approaching its 52-week high.
Takeaway
In my view, there are tentative signs that energy stocks are coming back from a long slump.
The global economy is strong and worries about geopolitical tensions in the Middle East seem to be lifting oil prices.
Photo Credit: David Blackwell via Flickr Creative Commons
