While enhanced volatility and overall market declines have been hallmarks of the broader S&P 500 index for most of 2022, energy stocks have performed significantly well due to surging oil and gas prices aggravated by the Russia-Ukraine war. The Energy Select Sector SPDR ETF (XLE) has gained 42.7% over the past year, while the S&P 500 declined 16.7%.
According to the S&P 500 Global Community Insights Energy Outlook 2023, China’s total energy demand is expected to increase by 3.3 million barrels of oil equivalent per day. It will represent nearly 47% of global energy demand growth this year. Moreover, analysts remain bullish on oil prices this year despite various macroeconomic headwinds.
