Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
U.S. energy sector
Stock Market

The U.S. energy sector has grown, unlike other sectors of the global market

04.09.2022
2 min read

U.S. energy sector: oil continues to rise in price

The geopolitical confrontation in Europe has caused a decline in global economic growth. Having not yet fully recovered from the pandemic and its consequences, the market is again experiencing a serious crisis. Experts say that these six months have been the worst for the global market in 50 years. However, there are industries that continue to grow even in such difficult times. For example, the U.S. energy sector showed an increase in quotations amid a record rise in commodity prices.
In the first half of the year, the S&P 500 subindex, which shows the energy sector’s dynamics, rose 29%. This index includes 21 companies from the oil industry. The sharp jump in the index quotes changed the trend in the market, and at a time when this period was the worst for the rest of the market, the energy sector is showing good momentum. The market capitalization of the segment increased by $300 billion and continues to grow. At the same time, the index is down 21%, which is more than $8 trillion in monetary terms.
Analysts note that at the moment the energy sector is the most successful on the stock market, and its outperformance is exciting.energy sectorThe growth of oil and gas industry shares coincided with an increase in the cost of raw materials. It should be noted that the latter began to rise back in 2021. At that time the rise in price was due to a sharp increase in demand for commodities in the background of active economic recovery. In turn, supply has not kept up with demand for products and prices began to rise. The situation worsened in February of this year when the aggressor country unleashed a geopolitical conflict. This caused disruption of export/import processes, and in addition, other states imposed serious sanctions against the aggressor. As a result, countries had to look for alternatives to suppliers they had been working with for decades.
Demand for U.S. West Texas Intermediate crude oil has increased, and its price has risen by 40% this year. Last month its price exceeded $106 a barrel. Henry Hub US gas is up more than 60% and a million British thermal units are $5.7.
Thanks to this situation, oil and gas companies in the U.S. have significantly increased their profits. However, for consumers, the rise in price was disastrous, as prices at gas stations rose to record highs.
Despite the inflow of money into the energy industry, such a dynamic has its negative sides. The value of shares of companies in the sector is going down sharply, as investors are afraid of the consequences of rising interest rates. It is expected that such changes from the regulator can lead to a recession in the U.S., which is guaranteed to affect the energy industry.

Tags: Stock Market
0
Previous Post Inflation in Switzerland rises for the first time in 10 years Next Post Computer vision: using technology for retail

You Might Also Like

Daniel Kretinsky
Stock Market
Daniel Kretinsky becomes a major shareholder in retailer Fnac Darty
14.07.2023
Porsche
Stock Market
Luxury sports car manufacturer Porsche plans to float on the stock exchange
08.11.2022
green bond sale in Hong Kong
Stock Market
Hong Kong hosts the largest green bond sale in the sector
09.04.2023
outflow of capital
Stock Market
There is a record outflow of capital in the bond market
28.09.2022
Talkspace
Stock Market
The Talkspace app has struck a deal with Hudson Executive Investment Corp.
25.10.2021
Luxury house
Stock Market
Luxury house Ermenegildo Zegna plans to go public
23.04.2022

Recent Posts

  • 1investment in Turkey's steel industry
    Yıldız increases investment in the Turkish steel industry
    20.09.2023
  • 2Abu Dhabi Exchange
    The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
    18.09.2023
  • 3mobile marketing
    How mobile marketing helps to retain existing customers and attract new ones
    16.09.2023
  • 4E-commerce company Rakuten
    Japan’s Rakuten intends to raise funds by issuing shares
    14.09.2023
  • 5coal mining
    Coal mining in India has increased by more than 22% in 5 years
    12.09.2023

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Latest Posts

investment in Turkey's steel industry
Yıldız increases investment in the Turkish steel industry
20.09.2023
Abu Dhabi Exchange
The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
18.09.2023
mobile marketing
How mobile marketing helps to retain existing customers and attract new ones
16.09.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics