After months of strength, oil prices are exhibiting short-term weaknesses, with China imposing additional COVID-19 lockdowns. Analysts are concerned that reduced crude demand could meet with an oversupplied market in the near term.
However, oil stocks are showing a completely different scenario. The Energy Select Sector SPDR Fund (XLE) aims to provide before-expenses investment results that correspond with the price and yield performance of the Energy Select Sector Index companies. The fund follows a replication strategy and offers exposure to the U.S. energy sector.
