XLE•Sagard sees oil producers as a potential inflation hedge, while energy share gains may be lagging improvements in expected profitability. Front-month WTI futures rose about 80% in 2026 to above $103 per barrel, and December 2027 futures gained 39% to around $80.
Front-month WTI crude futures rose approximately 80% in 2026, trading above $103 per barrel as of October 23. December 2027 oil futures gained 39% to around $80 per barrel. The S&P 500 energy sector gained around 50%, but its roughly 3% index weight limited its broader market impact.
Easing geopolitical tensions could reverse oil and energy-share gains, while eventual replenishment of released energy reserves could support demand.
