Extended production cuts by oil-producing countries and the expected rise in oil demand brighten the energy industry’s long-term prospects. Given this backdrop, it could be wise to boost one’s portfolio by adding energy ETFs Vanguard Energy Index Fund (VDE), Energy Select Sector SPDR Fund (XLE), and SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Oil and gas prices soared last year over fears of supply constraints arising out of the ban on the supply of Russia’s oil and gas following its invasion of Ukraine. However, oil prices retreated toward the end of last year as supplies normalized. Oil prices started rising again and crossed $90 a barrel for the first time since November 2022.
