There are several reasons to believe that 2025 may be a gusher for long-suffering investors in the oil sector. Despite the United States pumping more oil than ever before, energy stocks, in general, have underperformed the market in 2023 and 2024. That underperformance speaks to the cyclical nature of supply and demand throughout the world.
An easy way to invest in the oil sector is through an exchange-traded fund (ETF) such as the Energy Select SPDR Fund (NYSEARCA: XLE). This fund holds approximately two dozen companies in the oil, gas consumable fuels, and energy equipment and services fields. That's why it’s often viewed as a proxy for the sector.
