Crude oil is the world's
most actively traded physical commodity. Eighty-nine million barrels are
produced every day. The lion’s share is sold through long-term
contracts between state oil producers and refiners. Freely-traded crude
oil is estimated at around a third of the physical market.
In the
crude oil market, we use our global presence, market knowledge and
logistics capabilities to balance supply and demand, optimize supply
chains and service our customers around the world.
We source
from private companies, production companies, oil majors and national
governments. We work with smaller producers that seek marketing
expertise to help distribute their crude oil production globally.We are able to provide heavy, light or mixed crude, JP54,D2, Mazut M100 and other products from reputable refineries or private traders.
LPG
Liquefied
petroleum gas (LPG) combines butane and propane. This inexpensive,
clean fuel produces 75% less carbon monoxide. A by-product of petroleum
refining and gas processing, LPG is useful
in a wide range of domestic and commercial settings. It serves the
fast-growing auto gas market. It is in demand as a petrochemical
feedstock. In non-industrialized economies it is a popular heating fuel
and used for off-grid refrigeration. Generators use LPG in combined heat
and power (CHP) plants to make low emission electricity. LPG currently
meets around 3% of global energy needs. Much of that is
sourced domestically, but there is also a growing export market.
International trade in LPG is expected to grow exponentially over the
longer term, as more is extracted from the huge shale gas deposits in
the US and elsewhere.
LNG
Liquefied Natural Gas (LNG) is one of the world's fastest growing
energy markets. Over 241 million metric tonnes were shipped in 2011. Global
LNG prices have traditionally traded at a substantial discount to
competitive liquid fuels for power generation. Natural Gas is also a
more efficient fuel, producing substantially lower CO2 emissions than coal or oil-based products.
LNG supply is constrained by
infrastructure. LNG producer-exporters must invest in assets and
equipment to liquefy their natural gas. Specialist ships transport it.
Importers convert it back to gas before it can be distributed to end-users. The recent upsurge in shale gas production
wrong-footed US energy planners. As a longtime net importer, it had
focused on building receiving terminals. It now has domestic excess
capacity, but few outbound terminals. It will only be able to export LNG
in quantity once these are built.
For now, most LNG trading
opportunities are West to East. Japan is a major importer. Demand is
increasing in Indian and Chinese markets. The market is still
quite technical. Pricing is normally fixed under long-term, point-to-point contracts. These long-term contracts are typically priced
off crude oil benchmarks. Less than 20% of total volume is actively
traded in the spot markets.