Energy is the best performing sector year-to-date. The S&P 500 Energy ETF (XLE) is up 62%, far outperforming any other equity group in 2022.
Oil rebounded on Tuesday after plunging by more than 3% in the previous session, as the implementation of sanctions on Russian seaborne crude oil eased concerns about oversupply while the relaxing of China’s COVID curbs bolstered the demand outlook.
Upstream investment in Russia’s oil and gas sector is set to plunge 30 per cent to $35 billion this year amid sanctions and a mass departure of foreign companies, Rystad Energy said in a report on Thursday.
Upcoming sanctions on Russian oil are set to be “really disruptive” for energy markets if European nations fail to set a cap on prices, analysts warned.
As more shippers and insurers turn away from handling Russian oil after its invasion of Ukraine, the remaining tankers still willing to handle such sensitive deals are able to charge higher prices.
Over the past years, Russia has expressed heightened interest in exploring and producing oil and gas in Africa.
The Group of Seven urged OPEC to pump more oil, even as it made new pledges to try to fight climate change.
Analysts said the inventory draw and the prospect of an EU embargo on Russian oil were pushing prices higher
The European Union’s REPowerEU seeks to reduce the European Union’s dependency on Russian fossil fuels and accelerate the transition away from carbon-intensive energy sources.