Battle for oil trading volumes heats up
National Oil Companies rule the roost when it comes to control over the majority of the world’s crude production and ownership of large-scale infrastructure, storage and downstream assets.
But despite their dominance in global oil flows, NOCs have traditionally left billions of dollars worth of spot oil sales and trade arbitrage deals each year to independent commodity traders and Integrated Oil Companies.
This could be set to change fast. Saudi Aramco, the world’s biggest exporter, and the UAE’s ADNOC are among a growing number of NOCs keen to develop in-house commodity trading operations to capture more value from their own assets.
If successful, the move could mark a major shake-up of control over global oil and commodity trade flows with independents such as Vitol and Trafigura facing tough new competition.
The following is a snapshot of the top NOCs, IOCs and the role of trading houses in current world oil trade.