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. KPMG Global Energy Institute’s latest publication: ‘Unfolding trends in the Oil Trading sector’, highlights six core macro developments shaping the industry today and delves into how oil trading entities are adapting to navigate through a tumultuous time.
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
About the authors
Oliver Hsieh is an associate director with KPMG in Singapore supporting clients with commodity price risk management.
Tim Rockell is a director with KPMG in Singapore and the Director for the KPMG Global Energy Institute in ASAPC.