Commodities had a stellar year in 2021. Whether it was fossil fuels, coffee, oil, copper or quartz, last year marked a decidedly bullish turn for several key commodities.
Gradual economic recovery, combined with an ongoing supply-side hangover from the pandemic, pushed prices up.
Fossil fuels including propane, heating oil, coal, ethanol, and gasoline surprisingly ended up being some of the strongest performers in 2021, thanks to OPEC cuts and the unprededented pandemic-induced lows of 2020. Oil prices this week hit a two-month high, with analysts predicting prices will continue to rise in 2022 as demand outstrips supply.
But the best performing commodity in 2021 by far was lithium—up 486% according to Trading Economics – a trend that looks set to continue innto 2022.