Clean Energy Stocks Extend Rally on AI Demand as Oil Falters
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i]7ccmp9h7k7wotvmbf54{w]_media_dl_1.png BloombergArticle content(Bloomberg) — Clean-energy stocks are extending their rally into 2026 on optimism over artificial intelligence demand, while oil companies are under renewed pressure as prices dip.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe S&P Global Clean Energy Transition Index, tracked by more than $5 billion in exchange-traded fund assets, has risen over 3% in the first few trading sessions of the year and its WilderShares peer has climbed more than 8%. In contrast, a benchmark of oil and gas producers has slipped 1%.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentOil suffered its steepest annual decline since 2020 last year on signs that output increases from OPEC+ and other producers are outpacing tepid demand growth. Any uptick in sales of Venezuelan barrels would put further downward pressure on prices.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentGreen stocks emerged as market leaders last year as interest rates eased. They outperformed the S&P 500 Index, Bitcoin, and even gold at one point, despite pushback against climate policy in the US and Europe.Article contentThe International Energy Agency forecasts solar energy to grow faster than any other major renewable source through 2035, driven by at least 40% increase in global electricity demand, according to its latest outlook. Article contentChinese solar and wind stocks, including Wuxi Autowell Technology Co., rank among this year’s top gainers, supported in part by a broader rebound in mainland equities. In the US, lithium stocks are also surging and Bloom Energy Corp., a fuel cell systems maker, has soared about 24% after nearly quadrupling its share price last year.Article contentClean energy is a “rates and valuation play,” given that borrowing costs are coming down for the spending-heavy industries, according to Charu Chanana, chief investment strategist at Saxo Markets. Article content“The outperformance can extend if bond yields keep cooperating and the power and grid investment cycle stays in focus,” she said on Thursday. “But it’s not a straight line — clean energy remains a high-volatility trade.”Article contentFor oil, “declining rates, capex discipline and geopolitics mean supply tightness can reappear faster than investors expect,” she added.Article contentTrending Posthaste: Mortgage borrowers who held out for lower rates are paying the price News RBC CEO says he's 'more excited' about Canada's growth outlook than he has been in a decade Banking Trump demands U.S. defence companies stop buybacks and dividends Investor Scotiabank let 3,000 people go late last year, CEO says Banking Canadian quantum computing company raises $180 million from investors including RBC, Telus Innovation Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: Mortgage borrowers who held out for lower rates are paying the price News RBC CEO says he's 'more excited' about Canada's growth outlook than he has been in a decade Banking Trump demands U.S. defence companies stop buybacks and dividends Investor Scotiabank let 3,000 people go late last year, CEO says Banking Canadian quantum computing company raises $180 million from investors including RBC, Telus Innovation