Before the cease-fire, oil stocks were already starting to look overextended, said Megan Fisher, an economist at Capital Economics. While oil futures expiring next month were trading well over $100, futures expiring later this year were below $80-indicating doubts in the market that the rally would hold. What's more, high oil prices tend to cure themselves- as gasoline gets expensive, people simply use less of it.
"Even if energy prices stay high, we're still a bit skeptical that that would be very bullish for the energy sector," she said in an interview on Tuesday before the cease-fire was announced.