1/11
Reading between the lines and it sounds like Shell's trading arm cannot be controlled.
A 🧵to explain.
ft.com/content/9aecf0…
Reading between the lines and it sounds like Shell's trading arm cannot be controlled.
A 🧵to explain.
ft.com/content/9aecf0…
2/11
Shell Monday:
When [Shell] revealed on Monday plans to exit its joint venture in Russia, its chief executive Ben van Beurden said he was shocked by the loss of life in Ukraine, resulting from a “senseless act” of military aggressive, which “threatens European security” ...
Shell Monday:
When [Shell] revealed on Monday plans to exit its joint venture in Russia, its chief executive Ben van Beurden said he was shocked by the loss of life in Ukraine, resulting from a “senseless act” of military aggressive, which “threatens European security” ...
3/11
... “Our decision to exit is one we take with conviction,” he said. “We cannot — and we will not — stand by.”
---
Ok Shell made a decision to walk away from Russia.
... “Our decision to exit is one we take with conviction,” he said. “We cannot — and we will not — stand by.”
---
Ok Shell made a decision to walk away from Russia.
4/11
But then the story says:
Yet on Friday, Shell’s powerful trading arm bought 725,000 barrels of Urals, Russian flagship crude, from commodity trader Trafigura at a record discount of $28.50 to Brent, the global oil benchmark. ...
But then the story says:
Yet on Friday, Shell’s powerful trading arm bought 725,000 barrels of Urals, Russian flagship crude, from commodity trader Trafigura at a record discount of $28.50 to Brent, the global oil benchmark. ...
5/11
... The trade was the first deal completed in a public trading window run by S&P Global Platts since Russia invaded Ukraine and traders said it would make Shell about $20mn when the oil is put through its refining system and then sold to consumers. ...
... The trade was the first deal completed in a public trading window run by S&P Global Platts since Russia invaded Ukraine and traders said it would make Shell about $20mn when the oil is put through its refining system and then sold to consumers. ...
6/11
... “I am astonished that Shell lifted this cargo,” said one senior trader.
---
On its face, it looks like Shell's trading arm completely ignored management's decision to exit Russia and bought a cargo of Russia Crude because it meant a quick $20 million profit.
... “I am astonished that Shell lifted this cargo,” said one senior trader.
---
On its face, it looks like Shell's trading arm completely ignored management's decision to exit Russia and bought a cargo of Russia Crude because it meant a quick $20 million profit.
7/11
Shell Mgmt tried to explain this
---
Most traders assumed the oil would be purchased by a Chinese or Indian trader or refiner, not a major international oil company that had just announced plans to pull back from Russia. ...
Shell Mgmt tried to explain this
---
Most traders assumed the oil would be purchased by a Chinese or Indian trader or refiner, not a major international oil company that had just announced plans to pull back from Russia. ...
8/11
... In a statement, Shell, which as well as being a big oil and gas producer is also one of the world’s biggest energy traders, said it was appalled by the events in Ukraine and had stopped most activities involving Russian oil. ...
... In a statement, Shell, which as well as being a big oil and gas producer is also one of the world’s biggest energy traders, said it was appalled by the events in Ukraine and had stopped most activities involving Russian oil. ...
9/11
... “However, we currently purchase it and other Russian products for some refineries and chemical plants to ensure that we continue the production of essential fuels and products that people and businesses rely on every day.” ...
... “However, we currently purchase it and other Russian products for some refineries and chemical plants to ensure that we continue the production of essential fuels and products that people and businesses rely on every day.” ...
10/11
... “We will further reduce our use of Russian oil as alternative crudes become available to buy, but this is highly complex as Russian oil plays a significant role in global supply and in the current, tight market there is a relative lack of alternatives.”
... “We will further reduce our use of Russian oil as alternative crudes become available to buy, but this is highly complex as Russian oil plays a significant role in global supply and in the current, tight market there is a relative lack of alternatives.”
11/1
So, Shell was shocked and horrified by what Russia did, and will not do business with them anymore, except when it does via Shell Trading.
And it makes a huge profit, remember it did so to help "everyday people."
You buying any of this?
So, Shell was shocked and horrified by what Russia did, and will not do business with them anymore, except when it does via Shell Trading.
And it makes a huge profit, remember it did so to help "everyday people."
You buying any of this?
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