
The energy sector’s outlook looks positive, with rising oil prices fueled by inadequate supply and high worldwide demand for crude oil and natural gas. Also, geopolitical factors such as ongoing disputes in oil-rich countries contribute to the energy sector's optimistic outlook. Therefore, it could be wise to own fundamentally strong energy stocks Shell plc (SHEL), Energy Transfer LP (ET) and TotalEnergies SE (TTE).
The World Bank warns that escalating Israel-Hamas conflict could lead to a 75% surge in oil prices, and exacerbated by Russia's war in Ukraine. This could lead to a global energy shock, a concern for economists and policymakers trying to combat inflation.