Energy stocks, as represented by a benchmark exchange-traded fund (ETF), the Energy Select Sector SPDR Fund (NYSEARCA: XLE), have had a difficult first half of 2025. The sector plunged in early April on a combination of tariff uncertainty and broader geopolitical moves in the oil and gas space, and it has failed to fully recover since then. As of late May, XLE is down more than 5% year-to-date (YTD).
Still, demand for oil and gas products continues to rise. Meanwhile, prices have fallen since the start of the year amid a surge in production. Prices of energy companies often move in tandem with the price of oil; however, that's not to say that some individual energy stocks have not thrived during this time period.
