Energy funds see record $3.2bn outflows, worst week in a decade
Energy funds suffered $3.2 billion in outflows in the week ending July 1, the largest weekly withdrawal since July 2024 and the second biggest in ten years. The 4-week average outflow hit a record $1.8 billion, reversing a $2.5 billion inflow average just two months ago.
Investor sentiment in the energy sector has sharply reversed. According to data from The Kobeissi Letter, energy funds posted $3.2 billion in outflows for the week ending July 1 — the largest weekly withdrawal since July 2024 and the second-biggest in at least ten years.
The prior week saw $1.5 billion in outflows, the largest since April 2025. As a result, the four-week average of outflows has climbed to $1.8 billion, a record high. This marks a stark reversal from the record $2.5 billion four-week average of inflows seen just two months ago.
Investors are aggressively rotating out of the energy sector, signaling a major shift in market sentiment.
Source: The Kobeissi Letter