By Peter Hobson
LONDON – Investment banks are set to make a record-breaking $20 billion trading and financing commodities like oil, gas and metals in 2022, more than triple what they earned in the years before COVID-19, analytics firm Coalition Greenwich told Reuters.
Banks such as Goldman Sachs, Citi and Macquarie have benefitted from massive volatility and supply chain disruption in commodities markets that began in 2020 and increased this year with Russia’s invasion of Ukraine.
Sky-high commodities prices have pushed inflation to multi-decade highs, stifled the global economy and created a cost-of-living crisis in many countries.
But volatile markets mean banks can make more money by trading commodities and offering financing, risk hedges and other services to clients ranging from traders and funds to utilities and airlines.
“Commodities trading desks have benefitted from the unprecedented volatility,” said Michael…
