Energy-sector ETFs the only group to see $1 billion in weekly inflows as Suez Canal blockage and coming summer demand create favorable backdrop for oil

Energy-sector ETFs the only group to see $1 billion in weekly inflows as Suez Canal blockage and coming summer demand create favorable backdrop for oil

Energy sector exchange-traded funds were the only group this week to add more than $1 billion in inflows as the cargo-ship blockage in the Suez Canal helped oil prices recover from their slump into correction territory.

Energy ETFs were a standout as flows to sector funds "fell prey to the general uncertainty" that ran through the week ended March 24, said EPFR, a subsidiary of Informa that provides fund flows and asset allocation data.

Four of the 11 major groups -- commodities, telecoms, technology and financial sector funds -- logged outflows for the week, according to a note issued Friday.

Investors pushed into energy sector funds "during a week when the blockage of the Suez Canal, the prospect of the North American spring and summer driving season and expectations of less investment in new supply helped the price of oil rebound from an earlier correction," said Cameron Brandt, director of research at EPFR, in the note.

Brent oil, the international benchmark, and West Texas Intermediate crude prices tracking US light, sweet crude this week fell into correction territory, with prices down 10% or more from recent highs.

Prices have since recovered some ground, with Brent and WTI each rising by more than 4% on Friday.