Despite energy being the worst performing sector so far in 2023, down 7.26% year-to-date, energy stocks emerged as the leading beneficiaries of the week, with a notable surge of over 4.77%, after Berkshire Hathaway (NYSE:BRKa) Inc acquired more shares of Occidental Petroleum Corp (NYSE:OXY). Additionally, data showed a more substantial-than-anticipated draw in U.S. crude and gasoline inventories.
This development has helped alleviate concerns about the impact of slowing global growth on energy demand. WTI crude oil is down approximately 12% this year, as rising interest rates hit investor appetite. Moreover, China's economic rebound has encountered hurdles following a prolonged period of consumption levels failing to meet expectations. Despite these circumstances, certain experts remain optimistic, anticipating a tightening of the market in the second half of the year. Such optimism stems from the continued implementation of supply cuts by the OPEC+ coalition and Saudi Arabia's voluntary reduction in output for the month of July.
Despite a gain of 4.70% week-over-week, Energy ETFs witnessed net outflows amounting to approximately CAD 13 million. Notably, the iShares S&P/TSX Capped Energy Index ETF (XEG), with CAD 1.9 billion in assets under management, gained 4.70% but saw outflows of nearly CAD 6 million.
Group Data CAD
Funds Specific Data CAD: XEG, NNRG.U
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