'Fast Money' traders talk energy stocks falling, erasing a week worth of gains

Market Overview & Trends - Energy sector experienced a significant drop, falling more than 2%, erasing a week's worth of gains [1] - The energy sector now accounts for only 4% of the S&P 500, highlighting its diminished size compared to technology companies like Nvidia [3][5] - OPEC plus is considering another output hike, adding 800,000 barrels per day, with 300,000 barrels from UAE and 547,000 barrels from OPEC plus, contributing to oversupply concerns [2][6] Company Specific Actions & Performance - Kico Phillips announced a workforce reduction of 20% to 25% [1] - Chevron announced a $75 billion stock buyback in January 2023, which ironically coincided with a peak for the sector [4] Geopolitical & Policy Impact - Geopolitical environment should suggest oil trading higher, but demand is not particularly great [6][8] - Potential Trump administration policies could favor energy production, including nuclear, natural gas, and oil ("drill baby drill"), but not wind or solar [7] Investment & Valuation Perspectives - Some believe there are value plays in the energy sector, but growth is challenged [5] - Despite disciplined companies, good balance sheets, and cash flows going back to shareholders, the energy sector has not seen positive traction [14]