The Pulse of Global Oil Markets.
As we enter 2024, the crude oil trader is like a tightrope walker – one misstep and all their profit disappears. Do you remember all of the price steps we had in 2022? In March, crude oil was priced at $130 per barrel, then in December it was down to $70 per barrel. Those drastic moves shaped fortunes for some and of others in a matter of weeks. Well, the volatility isn’t going away. We are continuing to see short term spikes in price from geopolitical events, shifting demand, and speculation. But smart traders know how not to be scared of volatility, but rather to be prepared for it. Here at Terra Commodities we provide our clients with insight into the market direction, risk management to protect against volatility, and access to real supply chains with real reliable suppliers. By partnering with the right partner, market changes will be looked at as an opportunity instead of a risky liability. Information is everything, be knowledgeable and stay ahead of the market. Trade smart.
Three Game-Changers Right Now
Today’s oil market is not merely constructed on supply and demand but an interconnected network of evolving policies on environmental objectives and geopolitical risk.
- The Green Energy Squeeze
European refineries are turning their backs on heavier crudes as they transition to cleaner fuels. Recently, we had a Swiss client who was about to get caught with 500k barrels of heavy crude! We had to replace the cargo with Asian buyers and helped mitigate their losses significantly.
- Geopolitical Flashpoints
With sanctions on Russian oil, shipping issues in the Middle East, and U.S. releases from the reserve, our Intel team is on watch for any new indications of risks to your deals.
- The Diesel Dilemma
While EN590 demand is up, and the number of closures of European refineries is down, supply is being tightened with long term contracts premiums increasing to 22%.
Terra’s Market Intelligence Edge
Last month, we advised our clients to brace for a deluge in West African grades, as weak Asian demand and climbing U.S. exports were set to flood the market. Those who took our advice early on escaped larger losses, including:
- 12% price drop in Bonny Light, one of the most liquid grades in the region
- Daily tanker storage cost of $35,000, as cargoes were stranded, unable to find buyers
At Terra Commodities, our market intelligence is more than facts and figures. We provide actionable intelligence to help clients pivot prior to the market, mitigating margin and capital deterioration. This is an unpredictable world where timing and trusted advice is everything.
Practical Tips for 2024
In today’s unpredictable energy markets, staying profitable means staying proactive. The smartest traders know it’s not just about reacting to price swings, it’s about positioning ahead of the curve. Here’s how to stay sharp:
- Diversify Your Basket: Relying on a single crude grade increases exposure to regional disruptions and pricing slumps. Blend your portfolio with a mix of light, medium, and heavy grades to reduce risk.
Watch the Contango: With storage economics back in play, traders are capitalizing on the widening spread between spot and futures prices. Tanker storage, once a cost burden, is now a profit opportunity.
• Hedge Strategically: Oil options are trading cheaper than last year, offering cost-effective ways to protect your downside and lock in profits.
As Daniel O., a Swiss trader, shared: “Terra’s weekly briefings helped us spot the Mediterranean diesel opportunity three weeks before competitors.” That’s the power of timely intelligence.
At Terra Commodities, we turn market noise into clarity. Our experts break down geopolitical triggers, demand patterns, and trading signals, giving you a head start in every decision.
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Don’t just trade, trade smarter with Terra Commodities.
