It’s no secret that commodity traders have had back-to-back record years in terms of profits. According to Oliver Wyman, profits likely exceeded $100 billion in 2022, enabling commodity traders to take a longer term investment perspective and increasing their importance in global markets. “Commodity traders are working more closely with governments to ensure security of energy supply and support new green value chains. By doing so, the job of a trader transitions from a market broker to an investor reshaping supply chains. Yet, while government incentives and the impact of sanctions create opportunities for commodity traders, the changes also impose expectations of new standards of scrutiny,” says the Oliver Wyman report. `it goes on to suggest that with new leadership and ample cash reserves, commodity traders are set to evolve into drivers of change in the industry suggesting that to capitalize fully, they need to proritize three areas as follows:- “Strategic asset positions across legacy and emerging value chains Widening risk management and steering at the desk and portfolio levels A collaborative, tech-enabled trading platform” One area that commodity traders are investing in seems to be refining. According to a recent article by Bloomberg, cash-rich commodity traders are buying the oil… continue reading