1. Energy Commodities Trading Margarita Brouwer-Boulankova September th USAEE/IAEE North American Conference

2. Key Message
Crude and refined products are the largest traded commodities in the world by volume and value
US production is growing & the US is increasingly playing a large role as a Global Trader
The Market has evolved and dynamics are changing rapidly especially in recent years
Financial players are changing the trading environment from a traditional fundamental supply & demand focus to more opportunistic and short-term event driven trading

3. Who are the Traders
Physical Trader
Financial Trader
Moving Physical Commodity
Speculative Trading

4. Commodities in the Supply Chain
Truck
Truck
Pipeline
Refining
Refined Products Storage / Terminaling
Pipeline
End
Market
Exploration &
Production
Rail
Rail
Crude Oil Storage / Terminaling
Export
Barge
Barge
Tanker
Tanker
Trading and Hedging
Trading and Hedging

5. Global Crude Oil & Liquids Production
1,000,000 bbls
per day
Source: EIA

6. Crude Oil Import to the US
1,000 bbls per day
14% decline since 2010
Source: EIA

7. Crude Oil Export from the US
Over 2mln bbls pd by June 2018
1,000 bbls per day
140% increase in 2 years
Source: EIA

8. Refined Products Export from the US
1,000 bbls per day
80 % increase in 7 years
130 % increase in 10 years
Source: EIA

9. US as the Global Trading Partner 10 years Ago Imports / Exports from selected key regions
Crude imports
Crude imports (larger volumes)
Refined products imports
Crude exports
Refined Products exports
Source: EIA

10. US as the Global Trading Partner Today Imports / Exports from selected key regions
Crude imports
Crude imports (larger volumes)
Refined products imports
Crude exports
Refined Products exports
Source: EIA

11. Contango vs Backwardation
Spread
$ per bbl
WTI
$ per bbl
Contango
Pipeline disruption

12. WTI-Brent Spread
$ per bbl
Export ban lifted

13. Final Remarks
The markets are changing rapidly with growing demand and production diversity
Open global markets stimulate more trading activities
The trading strategies are adapting to various market structures