Oil trading: generating profits (file image/pixabay)
US oil major Exxonmobil is to expand the company's oil trading activities in a bid to boost profits.
A report by Reuters citing executive recruiters and others says that the "development is a sea change for a company that has stood out from rivals by limiting its past activity out of concern it would be accused of market manipulation".
"Exxon now aims to trade around more of its growing energy assets to get the best prices for its products and increase earnings, according to an employee familiar with the matter," the report continued.
The company had already added ex-Glencore trader John Masek to its trading arm with ex-BHP Billiton trader Nelson Lee joining last month.
According to the report, crude, products and liquefied natural gas specialists have been added to London and Singapore offices while trader Paul Butcher, ex-BP, Glencore and Vitol, will advise on North Sea markets and accounting for trading transactions.
Oil trading is viewed as capable of generating profits when production is a tougher call.
During the oil price downturn of 2015-2016, companies like oil major Shell often made more profit in refining than in oil production and often cited trading as contributing to the success of the refining division, the report said.