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At a time of record fuel demand, bountiful oil and natural gas, and expanding economies, no stocks are doing worse in the world than energy producers from BP Plc to Hess ( HES ) Corp, Bloomberg reported. On the Toronto Stock Exchange, heavyweight Suncor Energy (SU.TO) is down 2% today. According to Bloomberg, its one year return is minus 27.5%.

The MSCI World Energy Index (MXWO) has declined 9.6% this year, more than any other group, according to data compiled by Bloomberg. The gauge has climbed 45% since equities bottomed in 2009, less than any industry with earnings tied to economic growth. In the U.S., the stocks are at the cheapest levels relative to the Standard & Poor's 500 Index since 2009.

Bloomberg said the divergence reflects the transformation of an industry where growing consumption of energy has been met with even bigger gains in supply. U.S. crude inventories are the highest since 1990 and natural gas prices have lost 38% in 12 months amid a glut spurred by hydraulic fracturing. Bears say energy producers, making up about 10% of global stocks, will keep equities from advancing. Bulls say the market will rally when their shares rebound.

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