Home›Global Markets›Europe›Refiner stocks surge, with history hinting at possible…

Refiner stocks surge, with history hinting at possible pullback

CNBC frames the current rally as an unusually strong run in refining shares, with a caution that the trade could be nearing an end.

Reported · Written up by our desk · Europe

Refiner shares have been on a powerful rally, and CNBC Markets says the move is approaching a level that is rare by historical standards. The outlet characterizes refining as a strong underlying business, but notes investors who have benefited from the trade this year may want to consider risk as the run matures.

CNBC World makes the same point, arguing that after an unusually large stretch of gains, the likelihood of a reversal rises even if refining fundamentals remain attractive. The coverage centers on the idea that the market’s momentum for refiner stocks may not be able to continue indefinitely.

Taken together, the reporting highlights that the appeal of refining is not in question, but the timing of the sharp stock-market outperformance may be a concern, with history suggesting the surge could eventually fade.

More like this

Sources