Total "Buy and Hold" strategy in crude oil earns over $1 billion, potentially the largest single profit in oil market history

BlockBeats message, March 30, affected by the escalation of the Middle East situation and disruptions in the Strait of Hormuz, TotalEnergies made large-scale purchases of Middle East spot crude oil in March and, in coordination with a derivatives long strategy, cumulatively reaped more than $1 billion in profit, potentially setting a record for the largest single-transaction trading profit in the history of the oil market.

Reports say that TotalEnergies “scooped up” roughly 70 vessels’ worth of UAE and Oman crude oil scheduled to be loaded in May. The procurement volume was double that of February, and amid a sharp drop in market liquidity, it established a dominant position, driving the Dubai crude oil price from about $70 per barrel to $170 per barrel.

Industry insiders noted that, with pricing benchmarks disrupted and deliverable crude oil reduced, TotalEnergies achieved a significant influence on prices by coordinating operations using “paper market” tools such as concentrated positions together with futures and options. Meanwhile, the high oil prices also intensified cost pressures for Asian buyers and further disrupted the existing crude oil pricing framework.