In a January 4, 2023, Barchart article, I highlighted the price action in the energy sector in Q4 2022 and 2022. While ethanol, natural gas, and coal prices fell in Q4, Brent and WTI crude oil, gasoline, heating oil, and crack spreads increased. Percentage losses in natural gas sent the sector lower at the end of 2022. The energy sector fell 4.62% in the final quarter of 2022 but posted a 15.47% gain for the year.
In Q1 2023, gasoline and gasoline refining spreads were the upside leaders, with ethanol moving slightly higher. However, crude oil, heating oil, distillate crack spreads, natural gas, and Rotterdam coal prices moved to the downside. The sector fell 11.96% in Q1, making energy the worst-performing member of the commodities asset class.
