Nickel future soared over 44% as global demand for nickel rose on EV boom. Brent gained 11% while U.S. crude rose nearly 7%. Bitcoin future tumbled 64% amid a rough year for crypto prices.
Oil prices swung wildly in 2022, climbing on tight supplies amid the war in Ukraine, then sliding on worries of an economic contraction, but closed the year with a second straight annual gain.
Prices surged in March as Russia's invasion of Ukraine upended global crude flows, with international benchmark Brent reaching $139.13 a barrel, highest since 2008. Prices cooled rapidly in the second half as central banks hiked interest rates and fanned worries of recession.
"This has been an extraordinary year for commodity markets, with supply risks leading to increased volatility and elevated prices," said ING analyst Ewa Manthey. "Next year is set to be another year of uncertainty, with plenty of volatility," she said.
For the year, Brent gained about 11%. U.S. crude rose nearly 7% in 2022. Both benchmarks fell sharply in 2020 as the COVID-19 pandemic slashed fuel demand. Investors in 2023 are expected to keep taking a cautious approach, wary of interest rate hikes and possible recessions.
Natural gas markets ended 2022 with strong gains after a global energy crisis triggered by the Russia-Ukraine war stoked prices, and tighter supplies expected in 2023 could fuel more gains. U.S. gas futures jumped by 17.8%, up for a third consecutive year.
Soybeans and corn both ended the year up around 14%, as severe drought in Argentina raised concerns about South America's crop. Going forward, food-commodity prices are likely to stay elevated. Wheat production is unlikely to replenish depleted world inventories, at least in the first half of 2023, while crops producing edible oils are suffering from adverse weather in Latin America and Southeast Asia.