US Top News and Analysis | Behind Big Oil’s first-quarter beat: The quiet rise of trading desks

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Oil and gas majors saw a sizable boost to first‑quarter earnings thanks to their trading desks, which buy, sell and transport physical crude and refined products while hedging price risk. Europe’s supermajors—TotalEnergies, Shell and BP—reported especially strong trading contributions, helping net income rise 29 % at TotalEnergies and more than double at BP, even as volatile markets were driven by geopolitical tension in the Strait of Hormuz and the US‑Iran conflict. Analysts say such desks can generate “a few hundred basis points” of return on capital during periods of sharp price swings, giving European integrators a competitive edge over U.S. peers. However, trading also brings cash‑flow volatility and higher short‑term debt, making it a double‑edged sword; its profit impact can fluctuate and should not be viewed as a permanent shift in business models.

Read more: https://www.cnbc.com/2026/05/12/oil-energy-trading-iran-war-bp-shell.html

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