Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
commodity trading profit
World exchanges

Oliver Wyman: commodity trading brings record profits

22.06.2023
2 min read

Commodity trading brings record profits to traders

In 2022, trade in commodities showed record growth. Revenues from it in the global market amounted to 115 billion dollars, and the main reason for the rise was the geopolitical conflict in Europe.
Fluctuations in energy prices impacted all sectors, including raw materials. And instability played into the hands of independent trading houses, which took advantage of the situation. According to an Oliver Wyman analysis, Trafigura and Glencore made record profits. 2022 was an ideal period for all commodities markets. There were enormous opportunities for trading due to the explosive growth of volatility.
The geopolitical conflict and subsequent sanctions imposed on one of the region’s largest exporters led to an energy crisis in Europe. The situation was complicated because traditional supply routes had to be rearranged, and new sellers had to be sought. As a result, delivery times increased significantly, and volatility increased for almost all commodity groups.commodity tradingStudies have shown that the gross profits of sector participants have increased by 60% compared with 2021. We are talking about banks, independent traders, and hedge funds. The results for 2022 are three times higher than in the pre-VII period.
The profit of the hedge fund sector was $12 billion. By comparison, in 2021, the industry received $3 billion.
Record profits of energy companies were noticed by the U.S. and EU authorities. The American president harshly criticized the business, accusing it of speculating on global problems. Besides, Washington is considering imposing additional taxes on the oil sector. Although politicians have not condemned commodity traders directly, their record profits also raise many questions. We are talking primarily about large trading companies that are involved in shipments around the world. For example, London-based Glencore reported a net profit of $17.3 billion, three times higher than last year. Singapore-based Glencore earned $7 billion, more than its combined results over the past four years.
The geopolitical conflict was not the only factor that brought record profits to the commodities market. The active growth in demand due to the recovery of the global economy after the pandemic also had an important impact. However, experts also note problems in the sector due to underinvestment. Funding constraints are hampering the expansion of commodity production to meet growing demand.

Tags: World exchanges
0
Previous Post Can neural networks replace copywriters: Search Logistics study Next Post Chinese microchip maker Yangtze Memory gets an investment

You Might Also Like

Johannesburg Stock Exchange
World exchanges
Johannesburg Stock Exchange launches updated version of Colo 2.0 system
23.11.2024
The St. Petersburg International Mercantile Exchange
World exchanges
The St. Petersburg International Commodity Exchange has shown significant growth for 2020
27.10.2021
gold is rising in price
World exchanges
Gold is rising in price: forecast of the precious metal’s value
24.01.2024
index growth-2
World exchanges
Oppenheimer analysts forecast growth of the S&P 500 index
10.03.2023
Kenvue Inc
World exchanges
Kenvue Inc has held its biggest IPO in the US since 2021
02.09.2023
Deutsche Borse-2
World exchanges
Europe’s largest exchange Deutsche Borse launches Ethereum ETP funds
06.12.2021

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics