Meanwhile, ongoing tensions and volatility in the Middle East between Saudi Arabia and Iran, along with higher-than-expected oil demand on a growing global economy, could support pricing over the short-term.

Consequently, given the uncertainties, it may be more prudent to stick with more stable integrated energy companies if an investor were interested in the oil segment.

“We like global integrated oil companies. Some are improving cash flows, and the group has lagged recent price gains in exploration and production companies,” according to BlackRock.

For example, the iShares Global Energy ETF (NYSEArca: IXC) offers exposure to some of the largest companies that produce and distribute oil and gas around the world, such as Exxon Mobil 14.1%, Chevron 9.0%, Royal Dutch Shell 5.7%, Total SA 5.6%, BP Plc 5.3%, Schlumberger 3.6% and Conocophillips 2.5%, among others. Top country weights include 53.5% U.S., 16.1% U.K., 11.1% Canada, France 5.6% and Italy 2.6%.

For more information on the energy sector, visit our energy category.