Market Insider

Energy stocks may be getting too hot

Traders on the floor of the New York Stock Exchange.
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Energy stocks may be getting too rich and could quickly give up gains if the Iraq situation is defused, some analysts say.

The S&P 500 energy sector is up 5.4 percent in the past month, and up 10 percent year-to-date, the second best performing sector. It's been riding high with the jump in Brent crude, up 3.7 percent since the beginning of June.

Oppenheimer senior energy analyst Fadel Gheit said the oil stocks are overpriced and are trading as if crude was going to stay at $110 per barrel.