Oil and gas stocks have started the year strong, with the S&P 500 Energy Sector up 6.8% year-to-date, despite supply pressure. Brent prices have risen due to Iran tensions. Continental Resources suspends Bakken shale drilling due to low prices. U.S. oil prices expected to average below $60 in 2026 due to oversupply.

The Bakken basin has a breakeven price of $58/bbl. Continental Resources turns attention to Argentina’s Vaca Muerta shale. U.S. oil output may decline in 2026. Lower oil prices make some wells uneconomical, leading to reduced drilling. Analysts forecast oil prices to dip below $60 due to oversupply.

China continues strategic crude oil stockpiling, adding storage capacity. New Energy Law in Beijing mandates storage requirements for companies. Clean energy stocks outperform oil and gas, with renewables sector growing. EIA predicts 21% growth in solar power generation in 2026 and 2027.

Clean energy ETF up 7.7% year-to-date. Solar power generation to grow by 21% in 2026 and 2027. Clean energy sector defies expectations of slowdown. Energy Law in Beijing mandates strategic storage. China expands storage capacity for national reserves.

Read more at Yahoo Finance: Energy Shares Outperform Early In The Year As Shale Drilling Pulls Back