Oil dominates the $5 trillion global commodity market

• Oil and its products account for 30% of global merchandise exports, valued at $1.5 trillion annually.
• The energy sector, including natural gas, electricity and coal, contributes 40% to the value of global merchandise exports.
• Agricultural exports, valued at $1.9 trillion, are second only to energy, with crops and forestry leading the category.

This graph, via Pallavi Rao of Visual Capitalist, categorizes more than $5 trillion in global merchandise exports by sector and the value of the material exported.

Data has been averaged between 2019-2021 to represent an annual estimate. Source figures can be found at State of Commodity Dependence 2023 published by UN Trade & Development.

Exports of goods with the highest value

Oil and its products represent an average of 30% of global merchandise exports, valued at $1.5 trillion annually.

Rounded figures.

When including exports of natural gas, electricity and coal, the energy sector contributes 40% of the value of global merchandise exports per year ($2 trillion). Agricultural exports ($1.9 trillion) rank second and are higher in value than mineral exports ($1.4 trillion).

in agriculture, crops and forestry has the lion’s share worth $1.2 trillion. This category includes everything from wheat to timber exports.

Meanwhile, the minerals sector is more evenly split between base metal exports (such as copper, iron and aluminium) and precious metals and stones (gold, silver, diamonds).

Not illustrated in this graph is how international trade in goods tends to be concentrated in just a few countries on the export side. For example, a quarter of the total copper produced in 2023 originated from Chile.

The reverse means that some of these major resource exporters have a significant amount of commodity dependence. And similarly, many of them are low- and middle-income countries. When international prices of exported goods fall, the likelihood of financial crises and cuts in public spending increases, further strengthening the economic challenges in these regions.

The value of oil exports closely reflects its consumption as a primary energy source. Check “What Fueled the World in 2023?” to see the energy mix of the world.

By Zerohedge.com

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