Oil and gas prices surged significantly last year, driven by high demand and supply chain disruptions aggravated by the Russia-Ukraine war. As per the CPI report for December, the energy index rose 7.3% over the past 12 months. Over the same period, the index for fuel oil jumped 41.5%, while the natural gas index grew 19.3%.
Moreover, the energy sector massively outperformed the broader market for most of 2022. Over the past year, the Energy Select Sector SPDR Fund (XLE) has gained 43.6%, whereas the broader S&P 500 index declined 7.7%.
