Oil trading

Oil trading encompasses a wide range of different types of companies. A clear distinction between these types of companies can be made by defining the different parts of the oil industry supply chain. Every part has its own business characteristics.

At the bottom of the supply chain are oil products distributors, bunker stations and fuel stations. These companies supply product to end-users. These businesses have to deal with limited profit margins and high price risks. By matching purchase and sales terms and conditions price risks can be controlled. Diversification of oil product supply contracts for these companies creates the flexibility needed to make healthy profits. However only by using good market information and analysis they are able to anticipate market developments taking the right decision to realise profits. PJK International has developed tailor made market information and analysis reports for the needs of these players.

A level up in the supply chain are wholesale oil traders, importers and international oil traders. Because of increased trading volumes possibilities to manage risks and the flexibility in supply arrangements are much larger. These players can trade on NWE/ARA international oil spot markets, on futures markets and on OTC derivatives markets. Because of this they are able to hedge their various positions adequately. Applicable trading strategies are diverse and optimal strategy is partly dependent on present and futures market circumstances. That is why good market information, market analysis and a clear vision is of importance. Read more about these subjects on our Knowledge Center.

A clear vision is essential because despite an abundance of information coming from real-time systems it is hard to interpret all of this. It can easily consume a lot of time to determine which information is relevant and assistance is clearly welcome. PJK International can support traders with its daily market information and analysis reports which focus on oil product prices, ARA oil inventories and oil transport markets (barges). Other services of interest are (econometric/quantitative) market research projects concerning specific subjects of importance.

Additionally trading companies can get support with optimising their trading and risk management strategies. Econometric and quantitative methods are used to model and simulate specific business situations and market circumstances.

Apart from physical oil products markets there is a large financial oil derivatives market. Market players that are active on this market are, apart from physical oil traders, investment banks and hedge funds. These companies use our market data like ARA oil inventories and barge freight rates and get this data either directly via us of via news agencies like Thomson Reuters and Bloomberg.

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