GEI - Unfolding Trends in the Oil Trading Industry

GEI - Unfolding Trends in the Oil Trading Industry

Over the last 18 months, the global oil trading industry is experiencing substantial change.  

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A blend of low commodity prices, capital requirements and increased price transparency has eroded margins, reduced arbitrage opportunities and modified the players participating in this competitive arena.

Stringent regulatory measures have led to rising complexity costs and a tightening of the financing environment. In response to shifting dynamics, the leading trading houses are adapting their core business model, status-quo trading patterns and risk management measures.

 

This paper addresses the broad impact of low oil prices on global oil trading; in particular it highlights Six Core Trends shaping the oil trading sector in the last 12 months:

  • Capturing the Value of Optionality – space, time and form
  • Diversification: Capturing Value across the Supply Chain
  • A Banking Retreat 
  • The Necessity of Risk Management
  • Trading Plays: Strategic Moves in a Downturn
  •  China: Implications of a slowing economic powerhouse

 

They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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