Commodities (Global Market)

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2022: Global commodity trading profits rise 60% to reach $115bn

In 2022, gross profit in the commodity market reached a record $115 billion, which is 60% more than in 2021. This was announced in early March 2023 by the research company Oliver Wyman.

Gas and Power Trading Overtakes Oil as Sector's Biggest Profit Earner

According to analysts, one of the main reasons for the growth was the high volatility of exchange prices for various types of energy carriers. At the same time, major private traders, including companies, have benefited the most from the strong volatility in exchange energy prices Trafigura Vitol. Glencore The military special operation Russia To Ukraine did not become the only reason for such a market development in 2022: the growth in demand for commodities, which was the result of the growth of the global economy and the restoration of economic activity after, also played a role. COVID-19 pandemic

Global commodity trading profit up 60% to $115 billion

Anglo-Swiss trader Glencore reported a net profit of $17.3 billion in 2022, which is three times more than in 2021. In turn, Trafigura's net profit for the fiscal year ended September 2022 amounted to $7 billion, which is more than the company's total net profit since 2019. A partner at consulting firm Oliver Wyman and one of the report's authors believes 2022 was something of a perfect storm for all commodities in terms of trading opportunities.

The share of Russian gas in the European market decreased from 45% in 2021 to about 7.5% in 2022, said French President Emmanuel Macron. However, according to Oliver Wyman, oil supplies from Russia to India and China reached record levels, and Asia for the first time became the largest buyer of Russian raw materials. From January to October 2022, the world LNG supplies of the EU member states amounted to 105 billion cubic meters, and in 2021 there were only 64 cubic meters.

In 2022, prices for commodities, from energy and metals to agricultural products, rose sharply, while rising energy prices provoked supply shortages and a strong economic recovery, as vaccination against COVID-19 weakened widespread blockages. Analysts at Oliver Wyman expect global commodity demand to remain robust in 2023 and sustain prices as the global economy continues to recover, although similar price spikes are unlikely. High prices are prompting producers to ramp up production, but some Oliver Wyman analysts expect supplies of products such as oil and liquefied natural gas to remain tight. Due to the fact that these projects take years to implement before production is launched.^[1]

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