CITI Commodities S&T VS BP Trading & Shipping Internship

Based on the most helpful WSO content, here’s a breakdown of your options:

Citi Commodities S&T Internship

• Compensation: Banks like Citi typically offer higher upfront compensation compared to energy majors like BP. This includes competitive base salaries, bonuses, and perks.
• Exit Opportunities: S&T analysts often transition to hedge funds (e.g., Citadel, Engelhart) or proprietary trading firms. However, the focus is more on financial instruments and derivatives rather than physical trading.
• Nature of Work: The role is more paper-focused, dealing with financial markets and derivatives rather than the operational and logistical aspects of physical commodities.
• Graduate Program: As you noted, S&T does not offer a structured graduate program, so you would need to secure a full-time role post-internship.

BP Trading & Shipping Internship

• Compensation: While BP’s initial compensation may be lower than Citi’s, the BP TDP (Trading Development Program) is highly regarded in the physical trading space. Long-term, successful traders at BP can earn significant compensation, especially with bonuses tied to trading performance.
• Exit Opportunities: BP’s TDP is considered the gold standard for physical trading. Alumni often move to top-tier trading houses like Vitol, Glencore, or Trafigura, or even hedge funds if they pivot to paper trading.
• Nature of Work: The focus is on physical commodities, including logistics, market analysis, and trading operations. This provides a strong foundation for a career in physical trading.
• Challenges: Landing a trading seat at BP is competitive. Only about 25% of interns receive return offers, and passing the ATC test at the end of the TDP is crucial.

Key Considerations

1. Interest in Physical Trading: If your passion lies in physical trading, BP is the better choice. The TDP provides unparalleled exposure to the physical side of the business, which is difficult to replicate in a bank setting.
2. Compensation Trade-Off: While Citi offers higher initial pay, BP’s long-term earning potential as a trader can be substantial if you secure a trading seat.
3. Risk vs. Reward: BP’s program is more competitive and comes with the risk of not landing a trading seat. However, the skills and network you build can still open doors to other trading houses.
4. Optionality: Citi’s S&T program offers broader exit opportunities into hedge funds and proprietary trading firms, which may appeal if you’re open to non-physical trading roles.

Recommendation

If your ultimate goal is to build a career in physical trading, BP’s Trading & Shipping Internship is the better choice despite the competitive nature of the program. The TDP is a direct pathway into the physical trading world, and the skills you gain are highly transferable within the industry. However, if you prioritize immediate compensation and broader exit opportunities, Citi’s S&T internship might be more aligned with your goals.

Sources: Physical Commodities: Shell vs. BP vs. Trading House Grad Programmes, Advice: BP IST Finance & Risk Summer Internship, Crude Oil trading at big oil exit opps, Correlation between top degrees and a career in commodities, Updated 2022 S&T Compensation