Energy shares have lately fallen out of favor. In fact, the broader energy sector declined in the first quarter of 2018 with the Energy Select Sector SPDR (XLE) down 9.5% over the last three months. However, oil prices stayed above $60 a barrel for most of Q1. Fresh concerns about possible supply bottlenecks pushed up oil prices and actually pared some of the losses for the energy sector in the first quarter.
It is therefore the right time to consider these three energy mutual funds that would benefit significantly from a rebound in the energy sector.
Energy Stocks to Bounce Back
The recent increase in oil prices is leading to the sector's resurgence. Oil prices increased by 7.5% to $64.94 per barrel during the first quarter and are likely to sustain their momentum. Incidentally, oil prices have increased for six of the last seven months. Furthermore, experts believe that the recent uptick in oil prices and strong earnings results can help the sector make a comeback.
