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

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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.