Physical Commodities: Shell vs. BP vs. Trading House Grad Programmes
Looking for some career advice from long-time physical trading experts here on WSO.
This past summer, I interned on one of Shell's trading floors, and worked hard to network with every desk on the floor. Tremendous learning experience, developed good relationships around the floor, and I believe that if I wanted to gun for an entry-level role in trading operations (with eventual rotation into the Shell TDP), the opportunity could be there. What's holding me back, however, is that the nature of Shell's Graduate Programme is not trading-specific: graduate rotations are determined largely by HR, with every possibility of ending in a department like Downstream Retail for 2 years, for example, if things do not go as planned.
At the same time, BP has just opened applications for their TDP programme. Unlike the Shell Grad Programme - I understand that the many rotations in this grad programme have been tailored specifically to help you build the foundations around physical trading in the future (E.g. Market Analysis, Trading Operations, Risk etc.)
Glencore & Trafi have also opened applications for entry-level grad schemes. The programmes seem attractive - but the LinkedIn profiles of grads at these houses seem to suggest that most do not make it to trader even after many years. Interestingly, there is an entry-level Market Analyst role with Aramco Trading that is also worth considering.
Now I know that I don't actually have all of these offers in the bag, but I'm keen to reach out to the WSO community to ask: given a choice between these opportunities with equal probabilities of success - which shop would you pick to start out a career in physical trading? (Taking into consideration issues like future exit opportunities, comp etc.) Would really appreciate some advice here - Thanks!
BP for three years to learn the ropes and when they don’t have a seat for you after that you jump ship to a trade shop and start taking on risk there. Prove yourself at a smaller shop and then if you’re good enough the Vitol’s and Trafi’s of the world will start knocking.
Like you alluded to, hard to break into a trading spot from the grad programs at the trade houses. Grad program at BP though is very well regarded in the energy trading space and people often pivot from there.
I work in metals but I would say BP/Shell. There are so many people in oil trading at Vitol/Glencore/Trafi that will never become actual traders. Coming it with with the kind of flow and assets you have from a supermajor is clutch. Shell has actually had a substantially bigger book than Vitol in recent times if you believe Bloomberg.
Difference in metals is that the mining majors are playing catch-up in terms of trading culture and the top traders are more asset-heavy in mining than in oil (did not pan out for Noble though).