Oil storage tanks are seen amid the coronavirus disease (COVID-19) pandemic on April 7, 2021 in Los Angeles, California, United States.
Lucy Nicholson | Reuters
Fundstrat Global Advisors co-founder Tom Lee told CNBC on Tuesday that he remained bullish on the energy sector as the U.S. economy recovers from the coronavirus pandemic.
“I think the whole energy complex is a buy,” Lee told Fast Money. “Structurally, industry and energy companies see the best alignment of supply and demand for more than 10 years.”
The energy sector was hit hard by the pandemic as the demand for oil declined due to a sharp drop in travel. The introduction of Covid vaccines and optimism about the economic reopening have revived demand and helped raise the price of oil while increasing energy companies’ inventories.
The Energy Select Sector SPDR Fund, which trades under the ticker XLE, is up nearly 34% since the start of the year. For comparison: The S&P 500 rose by more than 10% in 2021.