Energy stocks have helped to increase the stock market’s overall value during the first week of March. Thanks to higher oil prices and demand in the energy sector, energy stocks appear to be good investments, and a safe investment during a troubled economic times like now.
Energy Stocks Are in the game now
Several sectors are proving to become good investments in the first quarter of 2010, including bank stocks (Bank Stocks Up in Q1 2010). Energy stocks are also becoming very popular and very profitable for investors. Thanks to higher oil prices and high production claims from energy companies, the stocks of energy companies are beginning to rise and they are bringing the Dow Jones up with them. Thanks to stocks like energy stocks, the Dow Jones has moved into positive territory for the year so far.
Crude Oil Prices Are rising
Crude prices are on the rise as the price of oil rose by 98 cents over the first week of March, settling in at $79.68. Several stocks within the energy sector are also providing to be bright spots including:
- BP: With its plans to boost its oil production, the company saw its stock rise to $54.
- Hercules Offshore Inc.: This company saw smaller losses than what was expected and the stock rose by 17 percent to $4.67 as a result.
- EQT Corporation is buying 58,000 acres in Pennsylvania for energy production for $280,000 and that has helped the stock rise by two percent to $45.75.
The production of crude oil is also rising by 700,000 barrels in the coming weeks, with the stockpile of gasoline increasing by 600,000 barrels as well.
Energy Stocks are here to stay
Many investors are looking for stocks to invest in, and while banks stocks are recovering, some see them as still too risky to go after. For the investors who want stocks that seem to be going up over the past year, energy stocks lead the way. While the energy stocks listed here are examples of stocks that have done well, they are by no means the only ones. ExxonMobil is the example of another company that has done well over the past year and shows no signs of slowing down.
Investing in today’s market can be worrisome, and that pushes many investors into safe territory like energy stocks. Proof of the improvement in the energy market is seen in the various oil indexes around the United States.
• The New York Stock Exchange Arca Oil Index rose by .6 percent
• The New York Stock Exchange Arca Natural Gas Index rose by .9 percent
• The Philadelphia Oil Service Index rose by .9 percent
The Dow Jones also rose thanks to the strength of the energy market, which gives hope for investors in the future.
Many people do not want to invest in the stock market these days because they see it as dangerous. However, there are many sectors that are doing well, with the banking and energy sector being two of the fastest growing.
Further Reading
Companies That will Rise After Recession in 2010
After-Effects Of Recession on US Economy
Tags: Energy Sector, Recession After Effect, Stocks To Watch For