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Energy investors don't seem to be buying the rising inflation story
Looking at the price of $XLE, the ETF peaked on June 7. Since then, it has taken a long time to rebound to newer highs.

During the time between June 7 and today, Europe's energy crisis continues to worsen and the US has been releasing more oil from their SPR into the market.

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These catalysts would've brought the energy ETF back to new highs. But they didn't. The price of WTI Crude has kept declining since its June 7 peak.

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Maybe the market is pricing in a recession.

While some say that a victory in Ukraine will truly bring oil prices down, I say that might not be the case. The sanctions will remain in place to continue punishing Russia for choosing to invade in the first place. Also, Ukraine's infrastructure has already been badly damaged by the war, and that it would need time and capital to rebuild.

Plus, Ukraine wasn't a major oil-producing nation, to begin with. It was a major producer of fertilizer and crops. Winning the war in Ukraine will only help reduce the global food crisis.

Some will say that renewables will save the world from an energy crisis and reduce the demand for fossil fuels. However, renewable energy technology today is inefficient. And despite years of investment and expansion, renewable energy still makes up a tiny portion of the energy produced in the world. Nuclear energy is just getting started with its ramp-up. That's why I don't see green energy playing a big influence on the declining price of oil.

Thoughts on why energy prices have kept declining despite concerns over an impending energy crisis?

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