• 3 minutes Cyberattack Forces Shutdown Of Largest Gasoline Pipeline In United States - Zero Hedge
  • 6 minutes Renewable Energy Capacity Jumped 45% Worldwide In 2020; IEA Sees 'New Normal'
  • 11 minutes Forecasts for Natural Gas
  • 3 hours U.S. Presidential Elections Status - Electoral Votes
  • 5 hours Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
  • 6 hours Electric vehicle market growth is a blessing for some metals — and not a big worry for oil
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 10 hours CRAPPIFORNIA DOES IT AGAIN! California proposes to steer new homes from gas appliances
  • 20 hours Сryptocurrency predictions
  • 23 hours 1 in 5 electric vehicle owners in California switched back to gas because charging their cars is a hassle, new research shows
  • 1 day Joe Biden's Presidency
  • 6 hours .
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Shell Doubled Its Oil Trading Profits In 2020

Shell doubled its crude and refined products trading profits in 2020 from 2019, with its trading offsetting some of the negative effects of the collapse in refining margins and fuel demand during the pandemic.

Shell’s detailed annual report for 2020 from this week showed that its Trading & Supply segment was a large contributor to the Oil Products division, with earnings rising to nearly $2.6 billion, double the $1.3 billion of Trading & Supply earnings for 2019.

Total earnings in the Oil Products division were down to $5.995 billion in 2020, excluding net charges of almost $6.5 billion, compared with $6.231 billion in earnings in 2019. Trading & Supply accounted for 43 percent of the $5.995 billion earnings in the division last year, or $2.58 billion.

To compare, Trading & Supply represented 21 percent of the 2019 earnings of $6.231 billion, bringing in $1.3 billion in the last ‘normal year’ before the pandemic.  

The increased earnings from crude and refined products trading helped to some extent to mitigate the impact of the low oil prices, low refinery utilization, and low fuel demand last year.

Shell’s profits plunged by 87 percent in 2020, yet the supermajor managed to stay in the black, unlike BP or ExxonMobil.

Related Video: Fukushima's Radioactive Wastewater Disaster

BP is also benefiting from its trading operations. The UK-based supermajor likely sees its return on average capital employed in its large oil trading business at around $2.5 billion annually, according to Bloomberg’s estimates from September based on the company’s recent capital markets disclosures. 

BP, like most of the other Big Oil companies, doesn’t disclose how much its oil trading unit makes or how profitable those operations are. 

Europe’s oil and gas supermajors such as BP, Shell, and Total have vast oil trading operations and often trade more volumes of crude oil than the biggest independent commodity traders such as Trafigura, Vitol, or Glencore.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News