In Q2 2023, the composite of energy commodities trading on U.S. futures exchanges, including NYMEX and Brent crude oil, RBOB gasoline, heating oil, natural gas, and Chicago ethanol swaps, edged 0.53% lower. However, the sector led the commodities asset class on the downside over the first half of 2023 with a 14.44% loss. While refining spreads fell in Q2, they reflected seasonal factors over the first six months of 2023. Coal for delivery in Rotterdam, the Netherlands, another fossil fuel, declined in Q2, adding to losses from Q1.
As we head into the second half of 2023, traditional energy commodities are at levels where they will likely find support. The worst-performing commodities during one period often become the best as prices drop to unsustainable levels on the downside.
