2021 was a weirdly good year to be an energy investor if you could stomach some volatility
By most measures, 2021 was a good year to be an energy investor. According to research firm Morningstar Inc., energy outperformed every other funds sector, and asset flows into these funds grew a net $11.4 billion. As economies around the world started to reopen, energy demand surged, fueling a rebound by energy stocks.
Those same stocks could be poised to perform well this year, as energy demand remains elevated. Limited oil and gas supply is also likely to keep prices high. A recent research note from UBS suggested that oil could stay above $80 a barrel in 2022; it’s around $80 now.
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