After Disappointing 2017, Oil Stocks Show Promise

Investing.com - Oil stocks are off to a strong start with the rest of the stock market this year and most analysts think the sector will power forward in 2018.The outlook from major companies reporting earnings has also been positive.Though the S&P 500 energy sector index lost 4% in 2017, it staged a huge rally in the second half of the year.Analysts expect that turnaround to continue, as stock prices catch up with the rise in crude oil prices.With crude oil supply and demand in balance, the fundamentals are good.Strong global economic growth will support crude oil prices in 2018, with producers expected to keep output in check.Lower taxes will also help energy company profits, as the industry continues its recovery from a brutal two year slump.