Oil Majors See Soaring Profits from Trading Divisions
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Oil Majors See Soaring Profits from Trading Divisions
- European oil giants Shell, TotalEnergies, and BP reported a combined $15.5 billion in first-quarter profits in 2026, marking a 39% surge compared to the previous year, largely attributed to their trading operations.
- This increase in profits for these companies, including ExxonMobil, has coincided with geopolitical instability, such as the Iran war and disruptions in the Strait of Hormuz, which have led to significant volatility in oil prices.
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Major oil companies, particularly those in Europe, are experiencing a period of extraordinary profitability driven by their secretive trading arms. This surge in earnings is largely attributed to the volatile energy markets, exacerbated by recent geopolitical events like the Iran war, which began in late February 2026.
In the first quarter of 2026, European giants Shell, TotalEnergies, and BP saw their combined profits jump to $15.5 billion, a 39% increase over the same period last year. Shell led with $6.9 billion in profits, TotalEnergies with $5.4 billion, and BP with $3.2 billion. Analysts estimate that the trading divisions of Shell, BP, and TotalEnergies alone generated an additional $3.3 billion to $4.75 billion in the first quarter, accounting for a significant portion of their overall earnings increase.
The ability of these trading desks to capitalize on price swings and market disruptions has become a crucial differentiator for European majors compared to their US counterparts like ExxonMobil and Chevron, whose profits remain more tied to production. For instance, ExxonMobil’s adjusted profits reached $8.8 billion in the first quarter of 2026, with CEO Darren Woods highlighting the value of their trading capabilities during the crisis.
The volatility has been profound, with Brent crude, the international oil benchmark, soaring from below $60 in January to over $144 per barrel in April, as the Strait of Hormuz was shut down and trade routes were disrupted. This environment allows traders to profit by buying and selling oil and refined products at different prices across various markets and by helping customers hedge against price movements. TotalEnergies’ traders reportedly made over $1 billion in March alone by dominating purchases of key Middle Eastern oil.
The increased profits have led to calls for action, with some organizations and European finance ministers advocating for windfall taxes on the fossil fuel industry to alleviate the burden on consumers facing higher fuel prices. The world’s top 100 oil and gas companies are estimated to have banked over $30 million every hour in “un