Energy stocks have surged more than 5% in the early days of 2025, marking a strong start to the year and outpacing the S&P 500 index, which has experienced a 1% loss year-to-date. This performance follows two years of underperformance for the sector, with energy stocks losing 1.3% in 2023 and gaining only 5.7% in the previous year, while the S&P 500 gained nearly 50% over the same period. The rebound in 2025 has been driven by growth in natural gas stocks, spurred by a recovery in prices due to cold weather in the US and incremental sanctions on Russia's oil industry by the Biden administration, leading to a 4% surge in Brent oil prices to over $80. Despite the sector's gains, Wall Street analysts remain cautious, citing potential headwinds from OPEC's delayed production hikes and predicting Brent crude prices could fall to around $70 per barrel this quarter. Additionally, nuclear stocks have received a boost from the demand to power AI data centers.