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My predictions for 2024 are confirmed by the performance of the shares, which continue their rise, ready to achieve a good, if not excellent, result during 2024. However, the shares of the energy sector do not seem – for now – so “energetic”. But be patient. Energy is expected to take the lead later in the year, surprising many. I’ll tell you why.
Oil prices
Few expected the energy sector to decline by 0.9% in 2023, while world markets grew by 19.6%. Italian stocks in the energy sector performed better, gaining 19.1%, but lagged behind the +34.1% recorded by the Italian market overall.
After 2022’s outperformance fueled by high oil prices, many began to see large supply shortages due to wars and OPEC+ cuts.
Yet, by early 2023, oil had already fallen from the highs of March 2022. Global production growth, already high, allayed fears of a supply shortage and kept prices between $70 and $95, hampering companies in the energy sector, whose profits proceed in parallel with crude oil prices.
Today, many investors expect similar results in 2024, and are rushing to reduce their positions in energy stocks. However, oil prices are expected to rise over the course of the year, favoring Energy.