Oil prices surged past the $90 per barrel mark on Wednesday, posting its highest level in eight years, as oil supply remains limited, and Russia’s prospective invasion of Ukraine led to strong gains in energy prices. Brent Crude futures and the United States West Texas Intermediate crude futures both gained more than 2% to $90.07 a barrel and $87.43 per barrel, respectively.
Credit rating and risk analysis firm, Moody’s Investor Service, has predicted that demand for fossil fuels would propel beyond pre-pandemic levels this year, despite administrative commitments to reduce greenhouse gas emissions. Energy prices are expected to remain high, owing to strong demand and an uncertain supply. Investors' interest in the energy sector is evident from the Energy Select Sector SPDR Fund’s (XLE) gains of 60% over the past year versus the broader SPDR S&P 500 ETF Trust’s (SPY) returns of 12.9%.
