It is true that I, together with three other businessmen, sponsored a judo club where Mr Putin became honorary president, he wrote. We dont see the need to raise money from the market, Dunand said. WHO: Olam, founded 1989 by the Kewalram Chanrai Group, began trading cashews from Nigeria. Sometimes you get it wrong, but you have to accept it, he said. [3] Rich, now 76, would later end up on the FBIs most-wanted list for alleged tax evasion and trading oil from Iran after the revolution in 1979. Our Standards: The Thomson Reuters Trust Principles. Gunvors oil dominance has waned in the past two years -- it is handling around a fifth of Russian seaborne oil exports, down from a third three years ago. Mercuria, the former owner of Vesta Terminal, entered into a joint venture with Sinopec by selling 50% of the terminals in 2013. Its one of the largest physical suppliers of metals including zinc, lead and nickel, and a leading grain exporter from Europe, the former Soviet Union and Australia. U.S. and European regulators are cracking down on big banks and hedge funds that speculate in raw goods, but trading firms remain largely untouched. They left Cargill in 1987 for Goldman Sachss J. Aron unit in London. As Chinas clout grows, its very likely that Chinese firms will build trading dynasties of their own. As it turns the pumps back on, Libyan oil firm Agoco has allocated Vitol half of its crude production to repay debts. Koch eventually pleaded guilty in 2001 to a felony charge related to its reporting of the benzene emissions. The government of Ivory Coast said 16 people died. Founded in 2004, Mercuria Energy Trading is one of the world biggest independent energy . [31] In November 2022, it was announced Beyond6 has been acquired by the Chevron Corporation subsidiary, Chevron USA Inc.[32], Review of International Political Economy, "China slowdown spells end of big payday for iron ore traders", "RPT-Oil traders diversify into food and metals in quest for profits", "Citi sells Phibro after government pressure", "Oil Trader Mercuria's Ownership Structure Revealed in Filing", "Top three executives lift stake in Mercuria", "Polskie obywatelstwo i fortuna zbita na ropie", "Oil and Gas, PetroLama Energy Canada Inc. Calgary, AB Home", "Prior notification of a concentration (Case COMP/M.6807 Mercuria Energy Asset Management/Sinomart KTS Development/Vesta Terminals): (Text with EEA relevance)", "Oil traders say banks are demanding green targets for loans", "Louis Dreyfus metal traders, investment managers will join Mercuria Energy", "Mercuria Energy Group Ltd buys MGM International from Morgan Stanley - CEOWORLD magazine", "J.P. Morgan Completes Sale of Some Commodities Operations to Mercuria", "JPMorgan sells physical commodities unit to Mercuria for $3.5 billion", "ChemChina Acquires 12% Stake in Swiss Commodity Trader Mercuria", "Restructured Aegean Marine Becomes Minerva Bunkering", "Energy trader Mercuria gets green light to buy Aegean Marine Petroleum", "Aegean Marine Petroleum Network Inc. Reorganizes as Minerva Bunkering", "Energy trader Mercuria posts record profit for volatile 2020", "Trader Buys $36 Million of Copper and Gets Painted Rocks Instead", "Mercuria Buys Clean Energy Specialist Beyond6", "Chevron to acquire full ownership of Beyond6 CNG Fuelling Network", "Mercuria Commodities Canada Corp. - Relationship Science", "Mercuria Grows its Global Metals Trading Business", https://en.wikipedia.org/w/index.php?title=Mercuria&oldid=1146888302, This page was last edited on 27 March 2023, at 15:24. The warehouses seem to have an infinite capacity to absorb metal, but a very small capacity to release it, said Nick Madden of Novelis, the worlds top rolled aluminum producer. A small Minnesota linseed crushing business more than a century ago, the firm is now is so big its financial performance is often viewed as a barometer of agribusiness as a whole. The companies dispute the charges. It puts them in a tremendous position.. On the world oil markets the name Vitol is as familiar as Exxon is at the petrol pump. The thinking is, why open the books to the world? said a former lobbyist for Koch who requested anonymity. Mabanaft sold 20 million tonnes of oil in 2010, up from 18 million tonnes in 2009. Thanks to a market condition known as contango -- a period when buyers pay more for future delivery than to receive their cargoes promptly -- they could sell futures and lock in profits of $10 a barrel or more. Heres a look at the 16 companies, with aggregate revenues of $1.1 trillion, that trade energy, metals and agriculture. With their connections and inside knowledge -- commodities markets are mostly free of insider-trading restrictions -- trading houses have become power brokers, especially in fast-developing Asia, Latin America and Africa. Margarita Louis-Dreyfus told Les Echos that a listing, merger or the entry of a private investor were all options. JPMorgans Canadian and U.S. operations will prove most valuable to Mercuria, according to Dawe. [11], Its subsidiaries include Navitas Energy in Canada[12] and Vesta Terminal Services in Europe,[13] which operates port logistics, storage and processing facilities in the Netherlands, Estonia, Belgium, and Germany. The company has spent six decades trying to keep it that way. But in May the U.S. Commodity Futures Trading Commission sued Arcadia and Parnon, both owned by a Norwegian shipping billionaire, for allegedly manipulating U.S. oil prices three years ago, amassing millions of barrels they had no intention of using. In its early days it profited by opening a trade route shipping Russian crude to China from Gdansk, Poland.
Mercuria's One-Time Heir Apparent Slashed His Stake in Trader Thats the nature of their business., WHO: Glencore, founded 1974 as Marc Rich and Co. renamed Glencore in 1994, WHERE: Baar, Switzerland WHAT: Metals, minerals, energy, agricultural products, REVENUE: $145 billion in 2010 CEO: Ivan Glasenberg, STAFF: 2,800 people directly; 55,000 at Glencores industrial assets. Finding itself with a big client base, but short of the physical supplies it needed to meet demand, Noble built its own processing facilities. (Bloomberg) It's "possible" that oil will hit $100 a barrel this winter, but $80 to $90 is the expected range, said Marco Dunand, the chief executive officer of commodities trader Mercuria Energy Group Ltd. With surging energy costs contributing to inflation, as the global economy recovers from the pandemic . A large part of Glencores market value comes from its listed stakes in other companies, most notably a 34.5 percent holding in Swiss miner Xstrata. Vitol also discreetly supplied Libyas rebels with $1 billion in fuel, Reuters has learned -- supplies they desperately needed to advance on Tripoli. Thats what Koch, Vitol and others did in 2009 when they parked 100 million barrels of oil in seaborne tankers. With Kochs easy access to tankers and pipelines, the strategy locked in profits of up to $10 a barrel with virtually no risk, traders said. Tea Party movement. Koch said its 90s-era pipeline blast was the only event of its kind in the companys history, and that a report to Texas regulators was voluntarily submitted by the company in 1995 to reflect higher emissions than it had originally reported. In two decades of oil trading, Dunand and Jaeggi built fearsome reputations for seeing profit margins where others could only see potential losses. We support credit card, debit card and PayPal payments. Wilmars strategy is to have its fingers in every part of the supply chain, from point of origin to destination. Vitol says it is happy with its private status and has no IPO plans. Lims biggest bet may have been an unprecedented 1997 spree in which Hin Leong bought 30 million barrels of jet fuel and diesel in the key Singapore market -- worth nearly US$800 million over a three-month span. We havent seen this pace of population growth in our living memory, Verghese told a conference in Singapore late last year. Marco Dunand, our CEO, recently took part in a panel on energy security in a net-zero future, at the World Government Summit. Several of Fredriksens traders worked for BP in the early 2000s, where aggressive oil trading at Cushing turned huge profits, and also led to BP paying fines for alleged trading violations.
Marco Dunand, Mercuria Energy Group Holding SA: Profile and Biography That experience defined the trading strategies of Dunand and Jaeggi who moved from Phibro to start Sempras European and Asian trading business in 1999 before founding Mercuria in 2004. Mercuria specializes in trading and supplying physical commodities, investing in strategic assets, providing financing and logistics services and offering solutions to help clients meet their needs, including their net zero goals. The JPMorgan unit employs about 600 and represents a range of assets assembled over decades by firms including Bear Stearns Cos. and RBS Sempra, which the bank bought during an acquisition binge beginning in 2008. A row over oil export control could jeopardize its role in selling the nations crude. They include gas and power trading on both sides of the Atlantic, physical assets spanning 40 locations in North America, an oil-trading book with a supply and offtake contract with the largest refinery on the U.S. East Coast, 6 million barrels of storage leases in the Canadian oil sands, and Henry Bath & Sons Ltd., a 220-year-old metal-warehouse operator based in Liverpool, England. [5], Mercuria was started in 2004 by Marco Dunand and Daniel Jaeggi, then executives at Phibro, the commodities trader sold by Citigroup to Occidental Petroleum in 2009. He talked about how we are moving into action and investing in. 13 in the Fortune 500 list of publicly held companies, just behind Wall Street banking giant Citigroup. Founded 25 years ago by Briton Richard Elman, the Hong Kong-based, Singapore-listed Noble Group buys and sells everything from Brazilian sugar to Australian coal. Their combined stakes fluctuate at around 40%. The companys deal with Libyas rebels was a gamble. We are keen to consolidate our culture before we could think about changing it. Victoria Attwood Scott, Mercurias head of compliance, also joined from Goldman Sachs. Co-founders Marco. The new rules dont apply to trading firms. Vitol, the largest independent oil trader, handled 261 million and Trafigura traded 102.8 million tons of oil and petroleum products. newsletter, Energy Source. Outside the commodities business, many of these quiet giants who broker the worlds basic goods are little known. In March 2014, the firm purchased JP Morgan 's physical commodities unit for $3.5 billion. Shenouda, who joined Mercuria in 2014, had for years been seen as the likely successor to co-founders Marco Dunand and Daniel Jaeggi. Their reach is expanding. Nigerias Petroleum Product Pricing Regulatory Agency (PPPRA) said that in one transaction the amount of fuel submitted for subsidies did not match the actual quantity delivered. Olympique Marseille is at a crossroads, she told supporters in a statement to announce the changes at the club. analyse how our Sites are used. It became the first company to supply gasoline to the energy ministry after the war in 2003, and now is both a buyer of Iraqi crude and supplier of refined products. But to involve Mr Putin and any of his staff in this dialogue is speculation, he added. It bought UK-based metals warehouser and logistics firm NEMS in March 2010, a month after Goldman Sachs had acquired rival Metro and several months before Glencore and JP Morgan moved into the business. They are buying and selling oil. Argentinas tax office is investigating dozens of other agricultural exporters as well. In a move borrowed from the playbooks of western rivals, state-run oil firm PetroChina has set up a Houston oil trading desk and leased massive oil storage tanks in the Caribbean. Putin finally broke his silence last month: I assure you, I know that a lot is being written about it, without any participation on my part. Beyond Arcadia, Fredriksens stable of commodities-related firms includes MarineHarvest, a global salmon-farming conglomerate billed as the worlds largest seafood company. He also owns oil tanker operator Frontline, U.S. oil trader Parnon -- also named in the CFTC lawsuit -- energy driller Seadrill and gas distributor Golar LNG. Executives of Illinois-based ADM, formerly Archer Daniels Midland, were jailed for an early 1990s international price-fixing conspiracy for animal feed additive lysine. GENEVA, 3 October 2014 -- Mercuria Energy Group, Ltd ("Mercuria") announced today it has successfully completed the acquisition of J.P. Morgan Chase & Co. ("J.P. Morgan") Physical Commodities Business, following the signing of a definitive Purchase and Sale Agreement in March of 2014. The three top executives at Mercuria have increased their holding in the Swiss-based commodity trader since the start of the year, according to a filing with US regulators. At its headquarters on Genevas poshest shopping street, traders and executives wear open-collared shirts, sweaters and jeans, a sharp contrast to the shirt-and-tie policies at more established firms. Along the way it has moved headquarters to Belgium, Argentina, Brazil and then the United States. A deal with JPMorgan would further challenge Dunand and Jaeggi, who each own 15 percent of Mercurias equity, to integrate the operations into a company that is already growing rapidly. J+S denied any wrong-doing and suggested the investigation was politically motivated. (Bloomberg) In less than a decade, Marco Dunand and Daniel Jaeggi have turned a 10-person company supplying oil to a pair of Polish refineries into the worlds fourth-largest commodity trader with revenue topping $100 billion last year. At times Cargills power has got it into trouble. That gives banks who trade futures cause for concern, but since physical players usually receive exemptions to limits -- because they are categorized as bona fide hedgers -- trading firms should go unscathed. In less than a decade, Marco Dunand and Daniel Jaeggi have turned a 10-person company supplying oil to a pair of Polish refineries into the worlds fourth-largest commodity trader with revenue topping $100 billion last year. They are better together than they are on their own. U.S. regulations are now pending to limit banks proprietary trading -- speculating with their own cash. Analysts and commentators focused on differences between the forty-something, Russian-born Margarita Louis-Dreyfus and chief executive Jacques Veyrat over how to develop the 160-year-old family firm and whether to list its shares or seek a merger deal. The suit was settled out of court for an undisclosed sum. In metals, stock in warehouses can be tied up for years as loan collateral, allowing the same traders who dominate the metals market to control a huge chunk of world supply -- an apparent conflict of interest that has drawn criticism from the UK parliament. We are not thinking about an IPO -- but that doesnt mean we dont have an open mind, Dunand told Reuters in June. With 800,000 barrels a day to market, a volume similar to OPEC country Qatar, Arcadias annual gross revenue from oil could be around $29 billion based on current prices. Or this: publicity-shy Vitols sales of $195 billion in 2010 were twice those at Apple Inc. As well as the 200 tankers it has at sea, Vitol owns storage tanks on five continents. The talks with JPMorgan forced Mercuria to put another deal on hold. But there was one lesson that Rich must have cut short: how to avoid jail. Dunand said in January the sale of an equity stake could raise $500 million to $1 billion. We have a daily sales report from every corner where we operate and if we see sales slowing over a few weeks, we get to know the changing trend before others, one employee said, on condition of anonymity. Yet it took Russias most influential politician almost a decade to publicly address one of the most serious allegations against him. It is also the largest producer of consumer pack edible oils with about 45 percent market share. While its savvy traders were doing deals in eastern Libya, Vitol, along with rival Trafigura, kept refined product supplies flowing to the besieged government of Bashar al-Assad in Syria as his troops attacked civilians. Courts did not find any connection between its waste and sick people. Having said that, we have also been approached by potential investors -- sovereign funds and others -- who wish to make a private-equity type of investment in our company.. But make no mistake, if you perform well at Koch, you are richly rewarded in salary terms, the person added. By annual revenue Vitol is richer than Glencore but the numbers arent directly comparable -- Glencore owns more hard assets which, typically, are far more profitable than trade turnover. Verghese, who Forbes says is worth $190 million, believes he can go it alone and aims to quadruple the companys value by 2015. He competed fiercely with Indonesias Salim group, the business group commanded by his uncle, and won, to dominate the edible oil market in the worlds most populous nation. Dunand and Jaeggi first met studying economics at the University of Geneva in the late 1970s. Founded in 1988 by Japanese trading giant Mitsui Inc., it was sued in 2000 by independent US refiner Tosco for allegedly conspiring to jack up prices of European benchmark Brent oil by cornering part of the North Sea physical crude market. After Minnesota-based Cargill built a huge soybean terminal on the banks of the Amazon River in 2003, it was targeted by Greenpeace and subjected to Brazilian government injunctions for allegedly encouraging more farming in fragile rainforest. (Jessica Donati, Christopher Johnson, Ikuko Kurahone, Richard Mably, Dmitry Zhdannikov reported from London, Gus Trompiz from Paris, Caroline Copley from Zurich, Emma Farge from Benghazi, Karl Plume and Christine Stebbins from Chicago, Hugh Bronstein from Buenos Aires, Joshua Schneyer from New York, Luke Pachymuthu, Harry Suhartono and Naveen Thukral from Singapore; Editing by Richard Mably, Simon Robinson and Sara Ledwith), This story October 21 story was corrrected in the 17th paragraph to reflect that Trafigura paid a U.S. Customs fine on an Iraqi crude cargo in 2001, but denied wrongdoing; clarifies language on Trafiguras 2009 legal action to prevent a report on toxic waste dumping in Ivory Coast from being published. These days, Olam has upstream operations in everything from a coffee plantation in Laos to a rice business in Thailand, from almonds in Australia to cashews in Africa. You may change or cancel your subscription or trial at any time online. Crude prices up 2% on rising U.S. oil demand and lower output, Gold firms in face of economic and banking uncertainty, Marex Solutions selects MDX Technology Workflow for rapid, low-code application development, CarbonChain integrates with Quors Fintrade CTRM for seamless trade lifecycle carbon tracking, Exporting against the odds: Ukrainian efforts to support exporters, Appalachian E&Ps see opportunities for savings later this year, Diversifying Into Renewable Energy: Challenges And Opportunities, 2023 Market Sizing, Outlook, and Trends Through 2027, Thoughts on Gen10 An Interview with George Bradshaw, A New Vendor is Born An Interview with Tasja Botha Chief Executive Officer Quor, Tradesparent Rebrands to RadarRadar and Hones Its mission, Click to access the login or register cheese. NEW YORK (Reuters)- For the small club of companies who trade the food, fuels and metals that keep the world running, the last decade has been sensational. A wealthier world needs more food. From 2011 to 2013, Mercuria hired 570 people, including key executives from investment banks as it expanded beyond energy. What really makes them different is their growth, said Olivier Jakob, managing director of Petromatrix GmbH in Zug, Switzerland. With around $100 billion in sales, Koch Industries is a heavyweight among U.S. oil trading firms, and one of the most secretive U.S. corporations. Work Permit Application Outcome. Hes well on the way.
Duo Who Built Energy Trading Empire Set Sights on JPMorgan Unit But they have seen interest from potential investors, and have considered a tie-up with a sovereign wealth fund. But Cargill is anything but public. Fred Koch returned to the United States with a visceral hatred for Joseph Stalin and communism. Mercuria looks for opportunities to participate in industry initiatives, industry associations and working groups which aid communication and progress in our industry, as well as supporting published guidelines and initiatives wherever appropriate. [14], Mercuria is active players in energy and renewable markets through investments in the energy transition, with a particular focus on the United States and Europe. If you have any issue with this post please contact us, News > Commodity Trading > Behind the $100 Billion Commodity Empire That Few Know, CTRM Center "We expect demand to be a bit over 100 million barrels per day (bpd) at year end, which is a little bit short of pre-COVID levels . In April Noble appointed Li Rongrong, former chairman of the state-owned assets supervision and administration commission of China, as a non-executive director. Back in Hong Kong, he traded commodities with China in the 1970s and was the first to sell Chinas Daqing crude oil to the United States. The incident was the subject of The Informant, filmed on site in Decatur. Like rival Vitol, Trafigura has seized the opportunity to get into oil storage as oil majors focus on production. In the early 2000s, the Brent crude oil stream -- used as a global price benchmark -- fell to 400,000 barrels per day from more than 1 million in the late 1980s.
Mercuria Creates a Nature-based Investment Platform Fredriksens traders then hurriedly sold the physical crude at a loss, the CFTC lawsuit claims, ending expectations for tight supplies. A spike in world food prices in 2007 stirred an outcry against the largest grain trading firms; when oil prices surged to a record $147 a barrel in 2008, U.S. Congress probed the role of oil trading firms, but found no smoking gun. Global Advisors Newton said Dunand and Jaeggis ability to react to shifting markets means Mercuria will probably thrive in an unpredictable industry littered with failures. [22] Mercuria also acquired the reorganized Aegean Marine which was renamedMinerva Bunkering. Together, Glencore employees, including many of its top traders, own just under 80 percent of the company.
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