The extension of supply cuts from Saudi Arabia and Russia, coupled with a short-term decline in U.S. oil production from top shale regions, has sent oil prices soaring. November-dated crude futures (CLX23) are wavering ahead of the crucial Federal Reserve meeting today, but earlier this week rose to a series of new year-to-date highs.
As a result, the Energy Select Sector SPDR Fund (XLE) - a popular ETF that tracks the performance of top energy companies - has rallied more than 17% over the last three months. In the same time frame, the S&P 500 SPDR (SPY) has added less than 2%.
