The energy sector ($SREN) is blazing a trail higher, up 9% on a YTD basis. This surge is powered by OPEC+ production cuts, rising oil prices, and optimistic demand forecasts, highlighted by the Energy Information Administration’s (EIA) upbeat revision to oil price forecasts for 2024.
Earlier this month, oil prices (CLQ24) dipped due to OPEC’s production restoration plan, but quickly rebounded. Optimism around anticipated interest rate cuts, ongoing tensions between Hamas and Israel, and drone attacks on Russian refineries bolstered crude prices. An easing U.S. dollar further strengthened the market.
