Most commodity markets tend to be driven by a few basic factors which are freight on one side, price on the other side and qualities. Each commodity market has its own particularities. Most of what I will generally talk about applies to oil and the liquids in particular which is a little bit different from the gas market. Why ? Why is the gas market different from the oil market ?-** The Logistics are different. ** Transport is one part of the logistics chain but the logistics chain involves everything that happens from once you get the basic commodity out of the ground. When it's natural gas
03 Jan 2017
What commodities are best to trade in the mid/long term? Talking about physical trading at Glencore, Vitol, Trafigura...etc Currently an undergrad in Europe and I have the opportunity to work part-time as an assistant LNG or Copper trader. Physical, not paper trading. I will probably chose the LNG option as the company is a much larger and more dedicated to its physical trading business than the Copper option, but for future career options: Which products are more profitable and have a positive long term outlook? Metals, Oil, LNG, Agricultural products..?
07 Apr 2019
It seems like there's been an increasing amount of attention given to the physical commodities business on this site lately. If anyone can recommend any good books on the subject please post them here. Thanks. P.S.- Already read the King of Oil.
21 Jun 2011
Fracking. It is the multi billion dollar word that most of you should know very well. Also known as hydraulic fracturing, the process uses water, sand, chemicals and pressure to crack rock deep beneath the earth's surface, releasing vast amounts of previously unattainable oil and gas. Today, it stands as a stumbling block between the energy industry and critics who risk adding another unnecessary layer of volatility to energy markets which really don't need it.
15 Mar 2011
Interesting article on business insider about how Goldman is freaked out about the Volcker rule. Specifically, they're scared of Glencore and the threat it poses to their commodities business. Goldman is one of the 3 big BB commodities players, along with Morgan Stanley and Barclays. Because Glencore is not regulated, it can do whatever it wants with regards to leverage, prop, and compensation. This seems to confirm Midas' post yesterday on the big commodity players. The Real Reason Goldman Should Be Freaking
05 May 2011
Does anyone know if Glencore/Trafigura/Vitol or any boutique commodity trading firms have 2020 internship programs? I've tried to find information on this but it just seems that they higher recent grads. If they do, how does their recruitment process compare to BB trading internships?
23 Jun 2019
Has anyone seen the enourmous amounts of money that Glencore partners will be worth post the IPO. Ivan G himself could be worth c. $9B and some other partners (fellow South Africans like Stuart Cutler) will also be paper billionaires. Lower level partners will be worth hundreds of millions and there are a few hundred of these. Glennys is (maybe was pre-IPO) an amazing place to work at work at. If one could hack the tough culture and make it to trader status it seems to be a far better place to work than any BB. The guys I know personally that work there are not partners, but they make way way more than most BB traders. Most are very unhappy about going public. Public scrutiny is unlikely to help comp.
21 Apr 2011
Background: Undergrad student looking to jump into physical metals trading (main interest is in copper, zinc, lead concentrates) Just trying to get a better understanding of the differences in the way these firms are run and, ultimately, which offers better prospects for a grad entering the space. On the surface, it seems as if Trafigura has more opportunities for international exposure earlier on with its Global, Shanghai and Montevideo Graduate programs (willing to go anywhere). Also, my primary interest being in metals, Trafigura has a metals program starting in Geneva or Shanghai. On the
12 Sep 2019
One of the best articles I read in a long time, fascinating stuff. I heavily recommend it for anyone interested in physical commodity trading, as this is really where fortunes are built. We have no idea how many guys like him (not to the same extent obviously) are making insane money in remote parts of the world. Dan Gertler's bearded face lights up as he looks out the helicopter window. Below, an installation twice the size of Monaco rises from a clearing in the central African forest, where it transforms ore mined from the ochre earth into sheets of copper.
09 Dec 2012
Hey primates, Just found out I have a 30min phone interview this Thursday for an entry-level risk management position in London with Glencore. Anyone been through this experience before and care to share some advice? I'm guessing because it's a first-rounder it's mostly going to be fit questions, but they did ask a few questions like that on the online application. What else could they fit in 30 minutes? Any help is much appreciated!
04 Oct 2011
Does anyone know what the trading arms of Chinese oil companies (CNPC, CNOOC, Shaanxi Yanchang, Sinochem, ect.) are like compared to the majors or trading houses. Curious since the last chapter of The World For Sale mentioned that they take on more risk and trade with US sanctioned countries.
12 Apr 2021
I guess Linked In took the stage today with their ridiculous valuation, but today Glencore started their offerings. http://www.reuters.com/article/2011/05/19/us-glen…
19 May 2011
Hi brothers, I am based in Australia and I am seeking for your advice re the 2 offers I got recently. 1. Junior metals trader at Glencore. I will basically start from Logistics, Shipping, Contract Management, etc. to work my way up to a physical metals trader. 2. Performance Analyst sitting in National Australia Bank's asset servicing division. This division provides custodian services to funds. To quote the manager's description, this role sits in the front-end of the mid-office. It is quite technical in terms of financial reporting and analysis. Two roles offered similar base salary. Any
11 Feb 2014
Hi all. I'm a university student looking to breaking into physical commodity trading. Hoping some current or former traders would be happy to chronologically run me through a typical "trade" or "deal," covering pricing, logistics, finance etc. Would also be interesting to hear, seperatley, how offtakes are put together. I have read a post titled "Physical Commodity Trading Basics" parts 1 and 2 which was informative but the language was quite technical and a lot of abbreviations were used so I'm hoping someone could offer a fairly detailed explanation in simpler English.
29 Jul 2018
Hi guys, a quick question here. I am a recent graduate who has been working for about one year right now. Located in Asia currently. I have two options right now and am contemplating - either to go into Glencore to start off as traffic and then perhaps progressing onto a trader as I make it, or going into insurance equity research at one of the BBs. Just want to get you guys' opinions as these two are very very different industry. I will definitely get a much higher pay if i go into ER, but was just wondering if I make it as a trader in Glencore will it be much better for long term? TBH my
16 Jul 2015
Anyone know the differences between trading at an oil/energy firm like BP, on a commodities desk at an IB, and at a huge diversified producer/marketer like Glencore/Trafigura, if any? If you had the choice, what would you go for? Thanks in advance.
22 Oct 2011
What do the top ten commodities trading firms have in common? To start off, half of the firms listed as the top ten (2010 survey) are headquartered in Switzerland. An excerpt from Commodities – Switzerland's Most Dangerous Business says
The top firms have a diverse business, while some specialize in oil and gas, others are focused on grains and food, and some on metals. Whatever their main area of "Because of tax privileges, a strong financial industry and weak political regulation [Switzerland] continues to attract trading and mining corporations as a dunghill attracts flies."
30 Apr 2012
The trend at really big physical traders has been moving up the supply chain into production, with the obvious example being Glencore. Are the people buying up assets at a place like Glencore or Noble former traders or are they brought in from say PE funds/miners for that express purpose?
25 Jan 2014
Hi, I was just wondering why a good trading company would like to take assets on its book for a very long time. Glencore appears to have shot itself in the foot by acquiring mining and mineral business. Why did a mineral trading platform ever think that it can own mines and sell minerals? Consultants are supposedly good at Industrial domains attached but are they fit to run the industries as well? Can an energy/ oil and gas partner/ director of McKinsey become the best future CEO Shell has ever had? (The USD7bn failure at arctic) Should the consultants/ mineral trading platforms/ investment
05 Oct 2015
Looking for a brief overview of the trading done at big commodity shops like the companies listed in the title. What is compensation like (does it rival I.B.)? How often does a trader travel? Do they give internships/training programs out of university or do most people work at a big oil company trading desk like Shell/BP? What are exit opportunities like for traders? Very interested these careers and would love to learn more from someone who either works in the industry or is very knowledgeable about it. Thanks in advance.
30 Mar 2019
Out of interest, was wondering how bonuses for traders at physical trading houses such as Trafigura and Vitol are structured? Is it earned on a per trade or deal basis and how exactly is it calculated? Not much info about this online
23 Mar 2018
Have you hear about "bakchichs" to get oil, ores, commodities. Is it worth it for a trader to be " Public ", given a public company must get quasi-bared. ( think Noble group and its Fair value to-arrive equity) If yes, why also some traders who have become listed on the exchange still act if they were in the year 90s ? Glencore had to paid $100m to Dan Gertler in Congo deals but blame anyone but themselves. In the era of remarkable media/information system/world connectivity, who can they blame. The public trader
13 Mar 2017
Hi everyone, Just a quick background on me: I am currently entering my third year at University College London. I have worked at Glencore for two summers, and more recently a private commodities trading firm. I am very interested in the commodities industry, and would like to apply to trading graduate programs. Can anyone offer me any insight on which ones are the best, and the key differences between them? The companies I am currently looking at are Glencore, Trafigura, BP, etc. but I am open to any other companies. Thanks for your time!
27 Jul 2016
Physical commodities trading Physical commodities trading We are a global and diversified natural resource company. From powering the electric vehicle revolution, to the smartphone in your pocket, the commodities we source enable modern life.
22 Nov 2013