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Headline-Driven Markets a Headache for Oil Traders

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Increased market uncertainty has made profiting from speculative oil trading extremely difficult, prompting some frustrated players to exit the space entirely. While volatility is typically good for trading, volatility without any discernible pattern can be a nightmare for speculative commodity traders, who seek to profit from price fluctuations in these markets using futures and derivatives contracts. And lately, whipsawing political and economic headlines have driven market movements, rendering traditional trading strategies based on fundamentals less effective. Uncertainty has defined markets so far in 2025, and oil executives see no relief in sight amid a host of unresolved questions related to trade, geopolitics, Opec-plus policy, oil demand and the energy transition. US industrial conglomerate Koch Industries, which has over 40 years of commodities-trading experience, announced last month that it will exit crude and refined products trading to focus on “other, more customer-oriented trading activities.” Koch’s exit comes on the heels of US-based Pilot’s decision in January to close its oil-trading business to focus on delivering fuel supply to its Pilot Flying J travel centers, convenience stores and wholesale customers across North America. "What’s different this year versus last year is the high degree of uncertainty," said an oil trading executive. "We see that the market moves by a lot of headlines, and the headline comes and the headline disappears … and that makes trading very challenging because you can’t rely on the existing models that we all love to use."

Topics:
Oil Trade, Crude Oil, Tariffs, Trade, Corporate Strategy
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