Energy Stocks Face Challenging Year Amid Abundant Oil Supplies

Despite geopolitical tensions and OPEC's production cuts, analysts expect oil prices to remain stable due to ample supply.

Wall Street analysts predict a challenging year for energy stocks due to abundant oil supplies, which are expected to prevent a significant rally in crude prices.
Mizuho Securities downgraded eight oil and gas producers and slashed price targets, indicating Wall Street's skepticism towards the energy sector.
Global oil production is expected to keep the market well supplied this year, with oil prices predicted to trade 'sideways' through 2024.
Despite escalating conflict in the Red Sea, oil prices held a drop as broader market sentiment weighed on the commodity.
OPEC and its allies have begun a new round of production cuts, but traders remain skeptical of its effectiveness in preventing a global surplus.