Commodity trading :
Focus is on Physical arbitrage & pricing strategies
- Short-term (typically less than six months) :
- Location arbitrage using transportation (pipeline, ships)
- Time arbitrage using storage
- Quality arbitrage using blending
- Annual customer supply or off-take
- Multi-year storage or transportation contracts.
Typically, our physical exposure is hedged using liquid OTC swaps or exchange instruments (Nymex, IPE)
Combination of Trading operations and assets provide added value through asset-backed trading.
As a general rule, niches have a finite life and are eventually “taxed out” by late coming competition observing our trade patterns. The group is constantly re-inventing itself.