TotalEnergies Captures 70 Middle East Cargoes, Nets $1 Billion Profit
TotalEnergies booked over $1 billion in profits by purchasing about 70 Middle East crude cargoes for May deliveries, more than doubling its February volumes. Platts’ suspension of grades requiring Strait of Hormuz transit cut deliverable supply by 40%, enabling TotalEnergies to dominate the benchmark and lift crude prices.
1. Trading Strategy and Profit
TotalEnergies purchased around 70 crude cargoes from the UAE and Oman for May loading, more than doubling its February volumes, generating over $1 billion in trading profits as disruptions choked shipments through the Strait of Hormuz.
2. Benchmark Disruption and Supply Cut
S&P Platts suspended nominations of crude grades requiring transit through the Strait of Hormuz on March 2, removing three of five grades and cutting deliverable supply by about 40%, which created a liquidity gap in the Dubai benchmark.
3. Market Price Movements
With reduced benchmark participation, Dubai crude climbed from around $70 per barrel before the Iran conflict to an all-time high near $170, while Brent crude peaked at about $120 before easing to $113 as trading stabilized.
4. CEO Comments and Future Outlook
Chief Executive Patrick Pouyanné highlighted unprecedented refining margins and described oil product markets as dislocated, warning that a prolonged conflict could push European natural gas prices to $40 per million British thermal units.