Oil Stocks Rally Despite Falling Prices. Why People Are Buying.

A unique phenomenon has been playing out in the oil market: Oil stocks have risen 5% in the past month even as the price of oil has fallen 9%.

The divide could mean that oil stocks are set for a downward reversion, because they’ve outpaced the price of the commodity by too much. But some analysts see more upside ahead for many of the stocks. Their optimism has as much to do with general investor sentiment toward energy than strict fundamentals.