Related: 3 Energy ETFs Climb as Oil Hits Highest Since 2014
A combination of diminished global output and rising global demand have helped reduce the global supply glut that dragged on oil prices for years. Production cuts from the Organization of Petroleum Exporting Countries and their allies have largely contributed to the cut in supply. Meanwhile, expanding economies around the world has bolstered demand for raw materials such as crude oil.
“For investors seeking exposure to oil today, we see a stronger case for investing in energy equities over crude itself or energy-related debt. Oil prices have run well ahead of energy stocks this year but this trend has started to turn. One factor supporting energy firms: their focus on capital discipline, evident in first-quarter earnings results,” according to BlackRock.
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