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