Geopolitical issues disrupted the supply of crude oil and gas, leading to a significant rise in energy prices last year. Energy prices increased by 7.3% in the fiscal year 2022. However, energy prices declined 4.5% sequentially in December.
The energy sector significantly outperformed the overall market in 2022. While energy prices have declined from their highs, demand has remained steady. With the European Union imposing a price cap on Russian oil and restricting refined oil imports starting from February 5, supply is expected to remain tight.
