Oil traders, producers tweak assets to support trading gains

London (Platts)–26May2015/805 am EDT/1205 GMT * Traders on lookout for new assets * IOCs focus on trading amid low prices * Contango trade boost seen ‘overblown’ Vitol and Trafigura, two of the world’s biggest commodities traders, continue to look at boosting earnings by expanding their energy assets at a time that low oil prices are pushing some oil producers to integrate their own production and trading operations. Low oil prices have created a “buyers’ market” for commodity traders keen to grow their assets needed to complement a global trading business, the head of Trafigura‘s Eurasian business, Jonathan Kollek, said on the sidelines of an industry conference in London last week. Global trading houses have expanded their ownership role throughout the commodities supply chain over the past decade, buying up producing assets to pipelines in a bid for a logistical edge to boost trading profits. The assets also provide vital access to information on production and other operational data which can be harnessed to identify and profit from trading opportunities. “It is a buyers’ market, there are plenty of assets that make sense. Midstream, upstream — there are plenty of opportunities,” Kollek said declining to give specifics and noting that Trafigura … continue reading

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