XLE currently shows a P/B of 1.46, VDE has a 1.49 P/B and IYE is trading at a 1.39 P/B. In contrast, the S&P 500 index has a 2.53 P/B.
Lastly, the falling rig count is “fueling the dream that oil could be higher by 2017,” Parker added.
The Energy Information Administration recently cut its U.S. crude oil production outlook for the year and the next due to the lower rig count. Specifically, the agency projects output to fall 1.2% to 9.36 million per day this year and to 8.96 million per day in 2016, reports Mark Shenk for Bloomberg.
Analysts believe oil will average about $100 per barrel this quarter while the most pessimistic called for $84 per barrel.
For more information on the energy sector, visit our energy category.
Max Chen contributed to this article.