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Published: Mar 01, 2021 6 min read

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Rocket with commodities icons, such as copper, aluminum, and oil
Kiersten Essenpreis for Money

Market analysts are buzzing about a "commodities supercycle" on the horizon. Commodities are natural resources and some, like copper, crops and oil, have seen their prices soar recently.

West Texas Intermediate crude oil — a global oil benchmark — climbed 30% since the beginning of the year before falling slightly last week, and as of Monday is around $60.40 per barrel. Meanwhile, the price of copper rose above $4 per pound this month for the first time in nearly a decade.

Analysts at JPMorgan recently wrote the last supercycle bottomed in 2020 and that we’ve likely entered the upswing phase of another. Goldman Sachs analysts said late last year that we could be seeing similar forces at work now as those that drove commodities to surge in the 2000s.

So what exactly is a supercycle? And how should you position your portfolio to ride it out?

What is a commodities supercycle?