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Moving Markets

Energy ETFs Gain Momentum as WTI Crude Oil Approaches $87 per Barrel

With oil prices hitting a five-month high because of geopolitical tensions and OPEC+ cuts, energy ETFs like XLE and VDE saw significant gains, reflecting investor enthusiasm.

Rony Abboud
By Rony Abboud · April 8, 2024
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WTI Crude Oil Barrel

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The global oil market experienced a notable surge, reaching its highest price level in five months, largely attributed to escalating geopolitical tensions in the Middle East. This uptick also comes as OPEC+ members announced a voluntary cut of 2.2 million barrels per day, extending at least until the second quarter of 2024. All these factors have propelled WTI oil prices to $86.91/bbl, marking their peak since October 2023.

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Energy Stocks and ETFs Fuel Up

The bullish momentum in oil prices has sparked a rally in energy stocks with the S&P Energy sector up 3.90% for the week, subsequently benefiting energy-focused Exchange-Traded Funds. Energy ETFs collectively gained 3.37% over the week.

Leading the Charge: XLE and VDE

Among the standout performers, the Energy Select Sector SPDR Fund (

), with its $41.6 billion in assets under management (AUM), saw a 3.87% increase. Similarly, the Vanguard Energy ETF (
VDE
+1.26%
) enjoyed a 3.74% gain. This performance reflects growing investor confidence in energy assets.

Group Data

Index Data

Funds Specific Data: XLE, VDE, XOP, IXC, OIH, FENY, IYE, USO, IEO

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.

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