Macroeconomic volatilities and geopolitical crises hampered the overall economy’s performance last year. However, the performance of the energy sector has been significantly well. Over the past year, the Energy Select Sector SPDR Fund (XLE) has gained 44.9%, whereas the SPDR S&P 500 ETF Trust (SPY) declined 9.6% over the same period.
Furthermore, in its monthly report, the International Energy Agency said that the lifting of COVID-19 restrictions in China could propel global oil demand to its highest on record, surging from its current 100 million b/d to almost 104 million b/d by the end of 2023.
