Analysis: US Energy Shares Soar Again, Stoked by Inflation

S&P 500 energy companies overall are expected to increase revenue by 72.7% for the fourth quarter from the year-earlier period, according to Refinitiv IBES.

Lewis Krauskopf, Reuters

Shares of U.S. energy companies are soaring in the early days of 2022, driven by a shift to so-called value stocks and assets that stand to benefit from the steepest inflation in nearly four decades.

The energy sector is up over 14% this year, against a 0.8% drop for the overall S&P 500. Energy also posted the biggest gains of any S&P 500 sector last year, rising nearly 48%.

Several factors are behind the sector’s performance. Brent crude has surged about 23% since early December and is near its highest level since late 2018.

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