The overall economy relapsed last year due to geopolitical turmoil and macroeconomic headwinds. However, on the contrary, the energy sector performed comparatively well. The Energy Select Sector SPDR Fund (XLE) has gained 26.1% over the past year, while the SPDR S&P 500 ETF Trust (SPY) plummeted 10.2% over the same period.
As per the U.S. Energy Information Administration’s Short-Term Energy Outlook for February, global liquids fuel consumption is likely to surge from an average of 99.4 million barrels per day (b/d) in 2022 to 102.3 million b/d in 2024, driven primarily by growth in China and other non-OECD countries.
