Investment sentiment toward the energy market is shifting dramatically. Energy sector funds experienced a $3.2 billion outflow in the week ending July 1, marking the largest weekly capital exit since July 2024 and the second-largest weekly outflow in at least ten years.
The prior week already saw $1.5 billion in outflows, the highest since April 2025. As a result, the four-week moving average of capital outflows has reached negative $1.8 billion, the highest level ever recorded.
This represents a stark reversal from just two months ago, when the four-week average of inflows to energy funds had peaked at a record positive $2.5 billion. Investors are now aggressively pulling capital from the energy sector and redirecting it to other market segments.