Energy has been one of the top performing sectors in recent weeks, as sanctions on Russia by the U.S. and much of Europe has triggered a global oil-supply shock as the nation is the third largest exporter of petroleum.
Oil prices surged to their highest levels since 2008 earlier this week as Russia's invasion of Ukraine and as Western sanctions weighed on overall outlooks. European Union leaders earlier this week announced the bloc will start phasing out purchases of Russian oil, coal and natural gas, but have yet to set a specific timeline. The United Kingdom said it will stop buying Russian oil by the end of the year, while the U.S. immediately banned Russian fossil fuel imports this week and is in the process of banning natural gas imports as well.
However, prices have somewhat pulled back later in the week as other oil producers work to fill the void in supply to meet demand. Still, U.S. benchmark West Texas Intermediate
Driven higher by rising oil prices, broad energy sector ETF Energy Select Sector SPDR Fund
The new uncertainty surrounding fossil fuels amid geopolitical conflicts, as well as their increased costs, has also made renewable energy investing more attractive, with related ETFs posting double-digit gains in the past week. The Global X Hydrogen ETF
Outside of renewables, ETFs tied to oil and gas servicing also rose this week as investors expect energy price gains to increase their profitability this year. Funds like VanEck Vectors Oil Services ETF
