A tight supply due to sanctions on Russia and soaring global demand from the lifting of lockdowns in China has kept oil and gas prices at high levels. While OPEC+ decided to hike output in July and August, the supply-demand imbalance is not expected to reduce anytime soon.
Investors’ interest in this space is evident from the FlexShares Morningstar Global Upstream Natural Resources Index Fund’s (GUNR) 4.8% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 0.1% returns. The global oil & gas upstream activities market is expected to grow at 9.5% CAGR to reach $5.66 trillion by 2026.
