Market Watch: Oil Prices Stuck Below $70 While Energy Stocks Hit 52-Week Highs — What's Driving the Disconnect?
Something unusual is happening in energy markets. WTI crude oil has spent most of February trading between $63 and $67 per barrel — well below the $80+ levels seen a year ago — while the three largest U.S. energy companies are trading at or near their 52-week highs. ExxonMobil has surged 56% from its 52-week low, Chevron is within striking distance of its all-time high, and ConocoPhillips just printed a fresh 52-week high at $113.80. The divergence raises a fundamental question for investors: are energy stocks pricing in a rebound that hasn't materialized in crude, or have the majors evolved into something fundamentally different from pure oil plays? The answer likely involves a combination of capital discipline, shareholder return programs, and a structural shift in how the market values integrated energy companies in an era of declining interest rates and geopolitical uncertainty. Meanwhile, the U.S. Energy Information Administration's latest outlook projects WTI averaging just $53.42 per barrel in 2026 — roughly 20% below current spot prices — adding another layer of complexity for investors trying to navigate the sector.