Preqin Quarterly Update: Natural Resources Q4 2022

Commodities lived up to their reputation as one of the most volatile asset classes in 2022. The year was dominated by significant geopolitical and macroeconomic events that triggered some of the most extreme moves in commodities markets around the world. Russia's invasion of Ukraine boosted the commodities rally, which followed the faster-than-expected post-COVID-19 recovery. A series of unprecedented sanctions imposed on Russia by many countries made the supply shortages of most commodities even more extreme, particularly for energy. This contributed to soaring energy prices in many regions, especially in Europe, and record levels were hit at multiple times throughout the year. As a result, natural resources was the top-performing asset class across alternatives, posting record-high returns.