Best Crude Oil Trading Shops for Jrs.?
Have been hustling for quite a while and really like the idea of being in crude (particularly the international component and it being relationship driven). What are some good crude oil shops to reach out to outside of the majors / trade houses? I have personally reached out to Oxy, ET, PetroChina, Delek, Aramco, Eni, Enterprise, Plains, Marathon, among others (but no major successes in getting an in). I want to see if I potentially missed any.
Based on the most helpful WSO content, here are some insights for junior-level crude oil trading opportunities:
Supermajors and Majors: While you've already reached out to some, it's worth noting that companies like Shell and BP are highly regarded for their trading operations. They provide invaluable experience due to their massive asset base and trading flows, which are unmatched by smaller shops.
Trading Houses: If you're looking beyond the majors, consider reaching out to top-tier trading houses like Vitol, Glencore, Trafigura, and Mercuria. These firms are known for their nimbleness, higher risk tolerance, and significant exposure to international crude trading.
Smaller Physical Trading Shops: There are numerous smaller physical trading shops that focus on niche markets. While they may not have the scale of majors or trading houses, they can offer lucrative opportunities and a more hands-on experience. Examples include LITASCO (Lukoil's trading arm) and smaller regional players.
Integrated Refiners and Midstream Companies: Companies like Marathon, Plains, and Enterprise (which you've already reached out to) are excellent options. Additionally, consider exploring other integrated refiners or midstream operators that have trading desks.
National Oil Companies (NOCs): You've mentioned Aramco and PetroChina, but there are other NOCs like ADNOC (Abu Dhabi National Oil Company), KPC (Kuwait Petroleum Corporation), and Petrobras that have trading arms and could be worth exploring.
Specialized Energy Traders: Firms like Gunvor and Castleton Commodities International (CCI) are also strong players in the energy trading space and could be good targets for your outreach.
Networking and Referrals: Many top traders at these firms have backgrounds in majors like Shell or BP, as highlighted in WSO threads. Networking with professionals from these companies or attending industry events could help you get a foot in the door.
If you're still struggling to get traction, consider focusing on building relationships with professionals in the industry, as crude oil trading is highly relationship-driven. Good luck!
Sources: Physical Energy Trading And Logistics, Crude Oil trading at big oil exit opps, Good Commodity Trading Firms?, Q&A: Physical Oil Trading, Compensation of commodities trading firms compared to supermajor oil and gas companies
Motiva
"(particularly the international component and it being relationship driven)." - This is a terrible reason, think harder about why Crude in general.
Appreciate the feedback on that. I have never given this answer in an interview, but I am curious why you say that. Obviously, all of the commodities have some relationship aspect to them but it just seems that in crude in particular there is an elevated focus on relationship building across the logistical value chain relative to something like power. In terms of the international component, that is ascribed to how certain geopolitical events can impact pricing via S&D shocks (albeit flat price not the focus of phys since you trade basis) and, thus, have an impact on how you move that product from a to b (maybe you move something around the Cape of Good Hope vs the Strait of Hormuz). Since you're in the industry, I would love to hear your reason / knowledge on this question. Thanks.
Hi bro -
Word to my mother I have no idea
Good luck bro Remember
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