Why oil and gas companies are becoming interesting again for investors

Frankfurt Because of the war in Ukraine, energy has become a scarce and expensive commodity. Equity investors can benefit from this, albeit differently than expected. Most returns are currently not found in corporations that are focused on renewable energies.

Instead, it pays to bet on a sector that was recently considered obsolete: oil and gas companies. From the point of view of investment experts, there is a lot to be said for the fossil industry: high commodity prices, low valuations and attractive dividends.

Measured against this, the money is actually flowing in the wrong direction. In March alone, European private investors acquired equity funds geared towards the energy sector with a volume of three billion euros. That is more than it has been for a year, as the Morningstar agency calculated for the Handelsblatt.