Commodity traders advised to invest in data

29 March 2019

International executives attended a conference in Switzerland this week where topics such as gold, renewable energy and global oil trading were discussed. In Australia, Fortescue’s 109 self-driven trucks will be joined by a new wave of autonomous vehicles. In other news, commodity traders have been advised to explore new data systems and oil export in the U.S. is on the up.

Here is a selection of our top news stories this week:

Commodity traders advised to invest in data. A recent report by Oliver Wyman has forecast a continuing decline in profit margins, with an expected drop of 15% by 2025. Since 2015, gross trading margins have already fallen by 20%. The solution, according to Roland Rechtsteiner, a partner at Oliver Wyman, is for businesses to invest in data scientists to review current models and embed new systems and strategies. Click here to read more  

FT Commodities Global Summit executives discuss market trends. At the conference in Switzerland, top traders explored a range of topics. Anglo America CEO, Mark Cutifani, unveiled their growth plans for palladium, while Justine Ryan, director of GE Renewable Energy, shared statistics for renewable energy installations. Further topics of discussion included gold, electric vehicles and global oil trading. Click here to read more

Morgan Stanley’s Commodities Chief unveils plan for new business growth. Despite recent downsizing of investments and staff, Nancy King has shared how the company is ready to bloom again with plans to expand into European oil and gas markets and increase their presence in Asia. Click here to read more 

The Caraval Group’s Chief Operating Officer shares the company’s imaginative use of digital technologies. Pioneers of new markets and trade routes, The Caravel Group have embraced digitisation by implementing innovative software and IT systems, to improve operational efficiency. With maritime transport providing more than 90% of goods and service travel, Angad Banga states it is ‘critical for the organisation to drive change’. Click here to read more

Last year, oil export in the U.S. rose by more that 70% (with 2 million barrels a day being produced) and the increase is expected to continue growing over the next few years.

Royal Dutch Shell Plc’s US President discusses gender diversity during CERAWeek. In an interview in Houston, Gretchen Watkins expressed the need for ‘hard targets’ to increase the number of female employees and executives in oil and gas industries. According to studies, just 22% of oil and gas workers are female whilst an overwhelming proportion of executives are white males. Click here to read more

U.S. oil export is on the rise according to a Bloomberg article this week. Paul Vega, head of global commodities for Trafigura Group in Midland, Texas notes that an unprecedented amount of oil is being pumped leaving American oil refineries faced with a mammoth task. Last year, oil export in the U.S. rose by more that 70% (with 2 million barrels a day being produced) and the increase is expected to continue growing over the next few years. Click here to read more 

Fortescue announce plans for autonomous vehicles. Competing with Google and Tesla, Andrew Forrest’s new vehicle research centre will build on the 109 self-driving trucks already utilised in Pilbara, Karratha. Elizabeth Gaines, Chief Executive of Fortescue describes the move as a ‘natural extension of our experience’, while Mayor of Karratha, Peter Long, expresses his excitement about the plans. Click here to read more

Concerns have been raised about carbon emission measures in Australia. New procedures, outlined by The Environment and Protection Authority in Western Australia, have been met with anger by fossil fuel giants, Woodside Petroleum. Likewise, in New South Wales, a recent court ruling rejected a suggested coal mine over fears that the greenhouse gas emissions will impact on climate targets. Click here to read more