European energy stocks shine despite low prices

London

THE cost-cutting campaign among European energy companies is paying off: Investors are buying up their shares even as oil prices drop.

Oil and gas producers in the Stoxx Europe 600 Index have rallied almost twice as much as the broader gauge since their September low, becoming some of traders' favourite shares. That's sent their valuation to a 10-year high relative to Brent crude, which fell below US$45 a barrel.