Supply shocks can be classified into positive and negative shocks. A positive supply shock occurs when there is an unexpected increase in supply, leading to lower prices. In contrast, a negative supply shock results from a sudden decrease in the availability of the commodity, usually resulting in higher prices. These shocks can arise from various factors, including natural disasters, sudden halts in production, regulatory changes, or geopolitical events. Supply shocks often lead to volatile market behavior, influencing price dynamics and trading strategies.