What explains the oil & gas segment's volatility since 2022?

The oil & gas segment's volatility since 2022 can be attributed to a combination of factors:

1. **Geopolitical Tensions**: Geopolitical risks, such as tensions in the Middle East, have influenced oil prices. The ongoing conflict between Ukraine and Russia has contributed to market uncertainty, affecting global oil supplies and prices.
2. **Supply and Demand Dynamics**: The balance between supply and demand is a critical driver of crude oil prices. Changes in production levels, such as those resulting from OPEC+ decisions, significantly impact market dynamics. Additionally, shifts in demand from major consumers like China, India, and the US, influenced by economic conditions and policies, affect global oil appetite.
3. **Economic Indicators**: Economic indicators, such as global economic slowdowns, trade disputes, or policy shifts, can lead to decreased demand for oil, pushing prices lower. Conversely, economic recoveries or stimulus-driven growth can increase demand and lift prices.
4. **Seasonal Patterns**: Seasonal changes in demand, such as increased consumption during peak travel or heating seasons, can lead to price fluctuations.
5. **Production Levels**: Changes in production levels, particularly from major producers like the US, can impact global oil supplies and prices. The US oil and gas production hitting record highs has added to the market's complexity.
6. **Market Sentiment**: Market sentiment, including expectations of interest rate cuts, can influence oil prices. For example, the anticipation of Federal Reserve rate cuts can be bullish for oil prices, as it affects the overall economic climate and demand for oil.

In summary, the volatility in the oil & gas segment since 2022 is a result of a complex interplay of geopolitical risks, supply and demand dynamics, economic indicators, seasonal patterns, production levels, and market sentiment. These factors can lead to rapid and significant price fluctuations in the oil and gas market.