The quiet rise of trading desks

Oil and gas giants benefited significantly from their trading desks through the first quarter, shining a light on a commercially sensitive and often-overlooked unit that tends to outperform during periods of market volatility.

Europe’s oil supermajors TotalEnergies, Shell and BP all pointed to robust trading results as they reported stronger-than-expected profits through the first three months of the year.

The earnings followed a period of extreme volatility for oil prices, particularly in March, as energy market participants closely monitored severe disruption through the strategically vital Strait of Hormuz amid the Iran war.

Oil trading desks are specialized divisions that buy, sell and transport physical oil and gas while managing price risks. These units seek to generate revenue beyond upstream production, particularly during volatile markets. Oil majors typically do not disclose profits from their trading divisions, however.

TotalEnergies CEO Patrick Pouyanné said crude oil and petroleum products trading activities achieved “a very strong performance in March” as it posted quarterly net income of $5.4 billion, a 29% jump from a year ago.

Shell Chief Financial Officer Sinead Gorman flagged “significantly higher trading and optimization contributions” through the first quarter, while BP highlighted “exceptional” oil trading contributions in its results.

Shell posted first-quarter adjusted earnings of $6.92 billion, up from $5.58 billion a year ago, while BP reported net profit of $3.2 billion, more than doubling its profit from the same period in 2025.

Maurizio Carulli, equity research analyst at Quilter Cheviot Investment Management, said TotalEnergies, Shell and BP stood out among integrated oil companies as having been particularly successful in establishing large trading units for oil, gas and liquified natural gas (LNG).

“It is important to highlight that oil majors practice trading that is supported by hydrocarbons they produce or of which they have physical availability. And that they can physically move such hydrocarbons around the world via ships and terminals that are either owned or contracted,” Carulli told CNBC by email.

“In other words, it is a ‘proper and long-term activity,’ not financial speculation,” he added.

U.S. oil companies may yet look to build out large trading units too, Carulli said, “particularly given the progressive shift of oil market influence from Opec to the US in recent years.”