The SPDR Select Sector Fund - Energy Select Sector (NYSE:XLE) which offers exposure to the U.S. energy industry, including many of the world’s largest oil producers, is up over 60% year-to-date. Even though President Joe Biden has released over 180 million barrels of oil from the Strategic Petroleum Reserves (SPR), with 15 million more barrels set to be released, crude oil futures have continued to trend upward.
Meanwhile, Natural Gas futures have somewhat stabilized as much of the West, Midwest and Northeast are experiencing a warmer fall season than expected due to La Niña weather patterns, which can also cause drier-than-average years. Once winter takes hold and households start kicking on their furnaces, companies benefitting from exposure to natural gas could see their profits padded as natural gas prices rise due to higher demand.
