Published on 8 Aug 2023 on Insider Monkey via Yahoo Finance
15 Worst Performing Energy Stocks in 2023
In this piece, we will take a look at the 15 worst performing energy stocks in 2023. If you want to skip our primer on the energy industry and recent trends, then head on over to 5 Worst Performing Energy Stocks in 2023.
The energy industry is always at the center of global affairs. Humanity's insatiable thirst for progress and economic growth all depends on a well 'oiled' industry supply chain. And as we found out last year, this is a delicate network of supplies that can be disrupted by a global event such as the Russian invasion of Ukraine.
Given Russia's importance in providing oil and gas to Europe, the Ukraine invasion lead to fears of sanctions against Russia and supply constraints, which made investors bet heavily on crude oil. When combined with the lax stimulus policy that was necessitated due to the coronavirus pandemic, this led to record high inflation levels which were driven primarily by high energy prices, especially pump prices for gasoline. To understand the severity of the 2022 inflation crisis, consider the fact that U.S. gasoline prices stood at a whopping $5 a gallon in June 2022 - their highest level since at least 1994. It took nearly six months to reverse this trend as the energy market stabilized and supplies improved.