The Goldman Sachs commodities team is reported to have made $3 billion in 2022, and wild fluctuations are fueling one of its best years ever.

  • Commodity traders at Goldman Sachs generated $3 billion in revenue in 2022, Bloomberg reported Thursday, a near-record high.
  • Traders profited from the sharp fluctuations in the prices of energy, metals and other natural resources after Russia’s invasion of Ukraine last year.
  • The commodity group has become a key source of profit for the investment bank.

Stock traders at Goldman Sachs made more than $3 billion last year, one of the best results as they profited from the price fluctuations fueled by Russia’s war on Ukraine, Bloomberg reported Thursday.

The investment bank released financial results last month, but did not disclose revenue and earnings generated in the commodities division. Revenue from general trading in fixed income, currencies and commodities jumped 38% to $14.68 billion.

Sources told Bloomberg that commodities trading alone generated more than $3 billion, far exceeding revenue of about $2 billion in the previous two years and approaching a high of $3.4 billion in 2009.

The report said commodity group Goldman was a key profit driver in a year that saw total net income halve to $10.8 billion. Its strong performance solidified its renewed status at the center of power at the investment bank after the downturn, he added.

In 2022, the commodities group went through a turbulent natural resource market, as evidenced by the wildly fluctuating prices of energy, metals and agricultural commodities following Russia’s invasion of Ukraine in late February.

Ukraine held a large share of the world market for wheat, barley and other commodities, while Russia’s vast oil and gas supplies were largely shunned by the West or cut off by Moscow.

The volatility has created a particularly profitable period for traders, from physical commodity producers to hedge funds, banks and other participants in the financial markets.

Commodity trading giant Trafigura, for example, posted a $7 billion profit in the fiscal year ending September, according to Bloomberg, more than the previous four years combined.

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