Non-Trading Role in Commodity Trading (ops, marketing, deal origination, etc.)

[Posting this in here because I know a lot of people here work within commods]

I’m currently a senior (set to graduate in May) and I didn’t lucked out with commodity trading trader development programs. Made it to BP’s technical round but didn’t ultimately get an offer. I also got rejected from Guvnor and Shell as well. I’m mainly interested in metals and energy (mainly energy), and id still love to work within the commodities space in an operations or deal finance type of role. Wondering a few things though:

  • What are some good roles that feed into this path? Any specific analyst paths / roles?
  • Where are these roles usually located? (I prefer to live in a LCOL / MCOL city, so Houston checks that box pretty well and I know a lot of firms are based there within energy)
  • What does entry level pay look like for an analyst straight out of school?
  • How competitive are these roles for hiring? I have a 3.4 from a decent B1G school (T50) w/ an econ major. I obviously don’t stack up well for certain high finance roles (IB, MBB consulting, PE out of school, etc), but wondering how i’d stack up for these roles?

Any insight would be very much appreciated!

5 Comments
 

Based on the most helpful WSO content, here's what you need to know:

  1. Good Roles That Feed Into This Path:

    • Entry-level roles like Gas Scheduler, Operations Analyst, or Credit Analyst at commodity trading firms are great starting points. These roles often provide exposure to the trading desk and the broader commodities business.
    • Deal finance or trade finance roles are also solid options, as they allow you to understand the financial mechanics behind commodity transactions.
    • Other roles to consider include Market Risk Analyst, Logistics Coordinator, or roles in supply chain management.
  2. Locations for These Roles:

    • Houston is a major hub for energy and commodities firms, making it an excellent choice for your preferences. Many large trading houses, energy companies, and supermajors have significant operations there.
    • Other cities to consider include Chicago (for agricultural commodities), Stamford, and Calgary (for energy-focused roles in Canada).
  3. Entry-Level Pay:

    • Entry-level pay for roles like Gas Scheduler or Operations Analyst typically ranges from $60,000 to $80,000, with potential bonuses depending on the firm.
    • Credit Analyst roles at commodity trading shops may also fall within this range, with some variation based on the firm's size and location.
  4. Competitiveness of These Roles:

    • These roles are competitive but not as cutthroat as front-office trading or IB roles. Your 3.4 GPA from a T50 school with an econ major is respectable and should make you a viable candidate, especially if you can demonstrate strong analytical skills, an understanding of the commodities market, and a willingness to learn.
    • Networking is crucial. Reach out to alumni or professionals in the industry, attend relevant events, and leverage LinkedIn to connect with people in these roles.

To improve your chances, consider gaining relevant certifications (e.g., CFA Level 1 or energy-specific certifications) and highlight any internships or projects that showcase your quantitative and problem-solving skills. Good luck!

Sources: Best entry level jobs out of 4 years college, Operations - Good & Bad, State School to Trading Physical Gas My Story (Long), Trading Power, Carbon & NGOs, Is IB not as attractive anymore?

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

I work for a diversified energy company that has a large presence downstream; certainly different from the majors. Many folks may start as a scheduler or an analyst before shadowing and becoming a trader. I myself was an energy market analyst; 'gov adjacent for a few years while in college before becoming a trader, technically before I graduated. I do think my case was rather unique though and usually a degree is a bare minimum requirement.

Schedulers might make max ≈80 while certain analysts might make ≈90. Depending on location.

Frankly, many college grads who apply truly don't understand the basics of the market. So for certain entry level roles, there may be far less competition compared to others.

 

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