{"text":[[{"start":11.34,"text":"The world’s biggest energy traders struggled to capitalise on the market turbulence in the early days of the Iran war, as they grappled with fuel tankers set ablaze, missile attacks at oil terminals and vessels stuck in the Gulf. "}],[{"start":27.38,"text":"While wars and big swings in energy prices typically result in bumper profits for energy traders, some were caught on the wrong foot when the Iran war broke out on February 28, with short positions in certain energy markets that had long been seen as oversupplied. "}],[{"start":45.22,"text":"Energy trader Vitol was among those to face setbacks, as it had more than 10 cargoes stuck in the Gulf at the time the war started. Trafigura had 10 ships inside the Gulf, which were all leased to other companies and which were not carrying its commodities, while Glencore had one."}],[{"start":64.55,"text":"Mercuria and Trafigura both nursed losses in the early days of the war, although some of these have since been reversed, according to market participants. Vitol, Mercuria and Trafigura all declined to comment."}],[{"start":80.38,"text":"The chaos at the start of the war, when it was unclear whether Gulf oil supplies would manage to keep flowing through the Strait of Hormuz, had left everyone unsure of their position, said one trading executive."}],[{"start":93.78,"text":"Vitol, the world’s largest independent trader, has been particularly exposed because it moves a lot of oil in the Middle East. After Iran in effect shut off Hormuz passage, two vessels carrying Vitol cargoes of naphtha that were trapped in the Gulf were set ablaze by Iran on March 12, killing one crew member, the company has said."}],[{"start":116.06,"text":"For its remaining vessels stuck in the Gulf, the cost of insuring and operating the vessels has skyrocketed as the conflict continues. Insurance costs for ships in the Gulf, which are set weekly, have risen more than sixfold since the war began. "}],[{"start":132.6,"text":"Vitol also had to relocate staff from Bahrain, and deal with disruptions at the oil-exporting port of Fujairah in the United Arab Emirates, where it owns a refinery and storage facilities. "}],[{"start":147.18,"text":"Oil infrastructure at Fujairah has been struck a number of times by Iranian attacks, although Vitol’s infrastructure has not been directly affected. "}],[{"start":156.77,"text":"Even as the Iran war has triggered a huge surge in energy prices and high volatility — normally conditions in which trading houses thrive — many initially struggled to handle the huge disruption. "}],[{"start":169.57000000000002,"text":"At Vitol, the pain of the physical disruption and stranded cargoes was compounded by losses on certain derivatives trades, according to people familiar with the matter. "}],[{"start":180.41000000000003,"text":"While market rumours of billions of dollars in losses at the top trading houses have been circulating, people close to the companies said they were not true, or that the scale of any losses had been grossly exaggerated. "}],[{"start":194.44000000000003,"text":"Several junior derivatives traders recently left Vitol, according to people familiar with the matter, but it was not clear if this was the result of any wrong-way bets on the market. Traders often move in the spring after bonus season."}],[{"start":208.47000000000003,"text":"“In the current environment it is extremely difficult — it is a complex and delicate task” to deliver the cargoes where they needed to go, said Jean-François Lambert, head of Lambert Commodities. "}],[{"start":223.57000000000002,"text":"However he added that the volatility would also present a “fantastic opportunity” for trading houses. “Probably 2026 will be a very good year from a profitability perspective,” he said. "}],[{"start":237.65000000000003,"text":"Previous periods of high volatility have resulted in bumper profits for trading houses. Vitol, Trafigura, Mercuria and Gunvor all reported huge profits for 2022 and 2023, when the Russian invasion of Ukraine sparked an energy crisis."}],[{"start":256.59000000000003,"text":"However, the current crisis is quite different. The challenge of simply securing cargoes has also become significant, as the vast disruption resulting from the war leaves traders unsure whether cargoes they have bought and hedged will arrive or not. "}],[{"start":273.18,"text":"The wild swings in commodity prices and the closure of Hormuz have prompted trading houses to secure additional lines of credit, which they can use to cover their margins. "}],[{"start":285.82,"text":"Vitol and Trafigura have both secured additional $3bn credit facilities, while Gunvor has secured $1.5bn. "}],[{"start":296.27,"text":"Additional reporting by Verity Ratcliffe, Rachel Millard, Jamie John, George Steer, Chris Cook and Lee Harris"}],[{"start":314.23999999999995,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1775179264_3558.mp3"}