Solar stocks climb as soaring oil prices boost renewable energy bets

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  • Shares of renewable energy companies surged on Tuesday on soaring prices for oil and other fossil fuels.
  • Enphase and FuelCell were among the stocks in the broader clean energy group that advanced.
  • Brent crude surged above $130 a barrel as the United States banned imports of Russian oil.

Shares of renewable energy companies soared on Tuesday, underscoring moves by investors to take advantage of shortages of oil and other fossil fuels exacerbated by Russia’s invasion of Ukraine.

A batch of solar energy and hydrogen stocks rose, as did exchange-traded funds that house alternative energy stocks. Additionally, the S&P Global Clean Energy Index rose 6% during the day.

Solar power system maker Enphase Energy climbed as high as 19% and hit a one-month high of $182.65 before paring the intraday rise to 10%. SolarEdge gained 13% to hit an over three-month high and SunRun also jumped 13% to hit a seven-week high.

Among hydrogen stocks, Plug Power rose 10%, Ballard Power jumped 13%, FuelCell Energy gained 9.5% and Bloom Energy gained 14%. Among alternative energy funds, the Defiance Next Gen H2 ETF climbed 10% and the Global X Solar ETF 5.5%.

The moves follow soaring crude oil, natural gas and coal prices following Russia’s invasion of Ukraine nearly two weeks ago. Russia is a major producer of these energy products, and investors have pushed prices higher in anticipation of supply disruptions resulting in part from international sanctions against Russia.

The West piled those sanctions on Tuesday. President Joe Biden has said the United States will ban oil imports from Russia. And the The UK has said it will phase out the import Russian oil and petroleum products by the end of 2022. Brent crude, the international benchmark, and West Texas Intermediate crude climbed on Tuesday, holding firmly around 2008 highs. Brent was trading around 130 dollars per barrel.

Retail investors have dramatically increased their buying of clean energy names, Vanda Research said last week. The retail investment activity tracker said it would monitor whether a backlash against Russia’s reliance on energy imports triggers another wave of retail buying in renewables .

Even before Russia’s attack on Ukraine, energy prices were skyrocketing. Oil had risen as the global market experienced a shortage during a period of high demand as COVID infections and restrictions around the world eased.

And the natural gas market had already faced supply issues after harsh winters in 2020 and 2021 severely depleted supplies in Europe and Asia, said Quinn Kiley, managing director and senior portfolio manager at Tortoise. , to Insider last week.

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