Oil Prices May Fall to $55 by 2026: Bad News for State Street Energy Select Sector SPDR ETF (XLE)

Oil prices may fall to $55 by 2026 due to a supply glut, according to the US Energy Information Administration. This could lead to lower profits for oil producers and lower gains for the State Street Energy Select Sector SPDR ETF (XLE), which holds a basket of fossil fuel stocks. The EIA's forecast is particularly bad news for XLE investors who were hoping for a bounce-back year in 2026.