Glencore oil trading volume
After three decades of stellar expansion and booming revenues, profit margins at Vitol, Glencore , Trafigura, Gunvor, Mercuria and other merchants have been squeezed by a market again awash with crude and amid stiff competition from national oil firms. A raft of high-profile US probes into trading activities are also shaking up the business, echoing the transformation that followed the US indictment of Marc Rich, the godfather of global oil trading. Veteran executives, many of whom learned the trade in the Marc Rich era, say only the fittest firms will survive the new crisis. He said companies have always had to change with the market, such as adapting to the development of futures. But last year was particularly tough.
Glencore's 2018 Oil Trade Volume dips 17 pct
After three decades of stellar expansion and booming revenues, profit margins at Vitol, Glencore, Trafigura, Gunvor, Mercuria and other merchants have been squeezed by a market again awash with crude and amid stiff competition from national oil firms.
A raft of high-profile U. Veteran executives, many of whom learnt the trade in the Marc Rich era, say only the fittest firms will survive the new crisis.
He said companies have always had to change with the market, such as adapting to the development of futures. But last year was particularly tough. Executives say consolidation is inevitable, as rising market transparency means companies have fewer opportunities to exploit quality or timing dislocations between producers and end-users to win deals outside of exchanges or futures markets. While bigger trading firms can absorb the weaker profits, smaller companies are racing to find savings and cut staff.
Monaco-based Galaxy Energy has quit the crude trading business, while mid-ranking ECTP exited oil and most metals trading. Castleton Commodities International closed its physical metals business globally and reduced its London oil desk. Gunvor Group, one of the top five independent oil traders, lost money for the first time last year although it was back in the black in the first quarter of It is considering asset sales.
Even state-run firms have felt the pinch. Azerbaijan's Socar Trading closed some refined products desks and shrank others. Other companies aim to adapt by scaling up and boosting profits by trading bigger volumes. Increased transparency thanks to ship tracking and satellite imagery of key infrastructure, such as refineries and storage, has eroded the amount of proprietary information trading firms could once rely upon to give them an edge.
Digital technologies are erasing a lot of these opportunities," Tornqvist said, although he said technology boosted efficiency. Trading houses are now investing in artificial intelligence and other technology to process the enormous amount of data available. Adding to the challenge, state-owned firms, scarred by the oil price rout between and , want a bigger share of oil sale revenues.
Some oil majors also eye the action. BP and Shell are already major rivals to the trading houses. Meanwhile, old business ways, such as relying on agents, also known as intermediaries, to set up contracts between state suppliers and buyers, have become a focus of investigations. The companies say they are cooperating with the authorities. Department of Justice," said a senior commodities trading executive with decades of experience.
Gunvor said it had reduced the number of agents it uses by a third since Trafigura Chief Executive Jeremy Weir said this year the firm had also cut the number of agents it uses. Dunand also said his head of compliance sat next to him, adding it was no help if compliance officers "are miles away. Probes and thinning margins are spurring leadership transitions at many companies, executives say.
That's why they want to take over. They want the rich old dogs out of the way," said a large shareholder at a major trading house. Log in. E-mail Password Remember Forgot password? Sign up. New member. United States. United Kingdom. Schweiz DE. Suisse FR. Latest News. Listed company. Sector News. All Analysis. Stock Picks.
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Glencore looks set to cement its position as the world's second-largest oil trader as it tries to offset low volatility and tight margins with record. Glencore's overall traded oil volumes fell 17 percent year-on-year in to million barrels per day (bpd), according to the mining and trading firm's annual.
In the first quarter, Glencore bought During that period, fuel-oil prices in Singapore rose 7. These conditions tend to favor bullish traders who have the resources and conviction to aggressively bid the window for a sustained period of time. In it, traders buy large quantities of physical fuel oil to benefit a separate position elsewhere, such as in the derivatives market or elsewhere in the physical market. This works because the supply curve of the physical is upward sloping.
After the first OPEC oil production cut in eight years took effect in January, oil traders from Houston to Singapore started emptying millions of barrels of crude from storage tanks. Gunvor, Vitol, Mercuria, Lukoil and Glencore declined comment.
The London-listed commodities trader and miner will shift around 6 million barrels per day bpd of crude and refined product this year, up 25 percent from last year. The figure represents around 6 percent of global supply and only rival Vitol trades more oil, at some 7 million bpd.
Showdown Sets Trading Records in Singapore’s Fuel Oil Market
After three decades of stellar expansion and booming revenues, profit margins at Vitol, Glencore, Trafigura, Gunvor, Mercuria and other merchants have been squeezed by a market again awash with crude and amid stiff competition from national oil firms. A raft of high-profile U. Veteran executives, many of whom learnt the trade in the Marc Rich era, say only the fittest firms will survive the new crisis. He said companies have always had to change with the market, such as adapting to the development of futures. But last year was particularly tough. Executives say consolidation is inevitable, as rising market transparency means companies have fewer opportunities to exploit quality or timing dislocations between producers and end-users to win deals outside of exchanges or futures markets.
Glencore traded oil volumes down 17 pct in 2018
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