They were just providing floating storage because there was no demand for their cargo, North Sea crude oil. “There are clearly defined rules and regulations in the UK prohibiting the manipulation of physical commodity markets such as the Brent crude market,” Shell said it its statement. Despite a glut in the global oil market, the price of Brent rose in April as if there were a shortage. While largely unknown outside the industry, physical oil trading is a multibillion-dollar business that can make money regardless of whether prices rise or fall. The shift highlights how Shell embraced risk-taking during the past five years under Mike Conway – the departing head of its trading business – and Mike Muller, in charge of oil trading.

Source: The Star February 21, 2017 03:19 UTC