Oil and gas prices are surging — Here's what that means for renewable energy stocks

Drazen_ | E+ | Getty Images

Renewable energy stocks are outperforming as the rapid surge in oil and gas prices — prompted by Russia's invasion of Ukraine — makes the case for alternative energy sources more compelling.

Oil shot above $100 per barrel for the first time in years the day Russia invaded Ukraine, and has climbed sharply higher since. On Thursday, Brent crude, the international oil benchmark, hit $119.84 per barrel, while the U.S. benchmark topped $116.

"The move higher in global natural gas and power prices is potentially a longer-term catalyst for acceleration of development of renewable energy capacity globally across a variety of technologies including solar, wind and green hydrogen," said Ameet Thakkar, energy transition and infrastructure analyst at BMO.

"These energy sources will be viewed as more price competitive in a higher for longer scenario for energy prices," he added.

More In Future of Energy

CNBC ProThree stocks to play the clean tech theme after Biden signed the largest climate bill in U.S. history
CNBC ProStocks including Honeywell and Emerson are under-the-radar beneficiaries of the climate bill
CNBC ProGoldman Sachs says planned energy transition is driving stocks, picks its 'best-in-class' names