Results for: Energy Sector

Pakistan’s Finance Minister Muhammad Aurangzeb has predicted positive economic developments in the ongoing fiscal year, including increased foreign exchange reserves and improved fiscal performance. The government is focused on reforms in the energy sector and privatizing loss-making enterprises. Pakistan has requested an IMF bailout package of $6-8 billion and the IMF has agreed to consider a larger, longer program. External buffers have deteriorated, but the government is implementing measures to reduce fiscal and current account deficits.

iShares Global Clean Energy ETF (ICLN) currently warrants a hold rating due to several barriers facing the global clean energy industry. While the long-term outlook for clean energy is promising, near-term challenges in U.S., European, and Asian markets are impeding growth. High costs for clean energy, stunted demand, and the prevalence of fossil fuels are significant roadblocks. Investors should be aware of the volatility associated with ICLN and similar ETFs, as they tend to experience more fluctuations than the broader market.

According to Citi, the energy sector is expected to maintain its strong performance due to elevated oil prices driven by geopolitical risks. The sector has outpaced the broader market this year, driven by rising energy demand and production cuts from OPEC+. While the oil market has cooled following tensions between Israel and Iran, prices remain significantly higher than last year. Citi analysts foresee continued support for oil prices in the short term due to global economic growth and geopolitical uncertainties, despite reduced demand growth projections for 2025.