The energy sector, broadly considered a weak space for investing less than two years ago, has significantly outperformed the rest of the market this year. Despite the recent retreat in crude oil prices, the eventual reopening of the Chinese economy and increased demand from Europe and North America due to the peak winter season are expected to help this sector keep outperforming.
According to Ninepoint Partners' Eric Nuttall, “What we've seen this year is the continuation of the largest drop in history in global oil inventories, meaning the market has been and remains undersupplied, despite the price action of the past month.”
