Oliver Wyman – Commodity Trading Report, 2024

In 2023, the commodity trading industry experienced a year of rebalancing after disruptions in 2022. Supply chains and commodity prices began to normalize, leading to a decline in trading gross margin from the record high of $150 billion in 2022 to around $100 billion in 2023. Despite the decrease, profits remained at the second highest level since 2018. Traders accumulated cash reserves of $70 to $120 billion, allowing new management teams to become impactful long-term investors in the energy ecosystem. The changing landscape enabled traders to play a more public-facing role and become trusted counterparties to a wider range of stakeholders. To meet expectations, traders will need to adjust their culture, governance, sustainability practices, risk management, operating models, and talent acquisition. The industry has rebalanced after the record high margins of 2022, reflecting a trend of stability and growth over the past several years.