Oil crisis causes significant energy price fluctuations; European oil giants’ trading divisions make $2.5 billion profit in Q1

Golden Ten Data reported on April 17 that the trading divisions of Europe’s three major oil giants have made billions of dollars in profit amid energy supply tensions triggered by the Iran conflict, outpacing their more cautious U.S. counterparts and helping offset the impact of Middle East unrest on their production operations. The energy price volatility resulting from the U.S.-Iran conflict created opportunities for traders. According to Reuters calculations based on company sources, the trading arms of BP, Shell, and TotalEnergies collectively earned at least $2.5 billion in the first quarter. The European giants have spent decades establishing their trading divisions, employing hundreds to buy and sell crude oil, fuels, and natural gas, capitalizing on price differences across regions and time periods, while also building positions in derivatives markets. In contrast, U.S. giants ExxonMobil and Chevron mainly use traders to optimize flows within their own production, refining, and fuel retail networks. This approach prioritizes predictability but limits the ability to profit from extreme market volatility.