The combination of unprecedented political uncertainty, trade wars, and rapidly evolving technologies is making commodity markets almost as unpredictable as they were during the financial crisis. But the chances of repeating the industry’s most profitable year to date are remote.
Exhibit 1: Shrinking Commodity Trading Margins
Commodity trading margins are collapsing, putting even more pressure on players to reach scale
BN1. Others include Asia power and gas, emission, exotics, and investor products
Source: Oliver Wyman proprietary data and analysisLegendChange