French oil major TotalEnergies made the decision to buy large amounts of Middle East crude in March after its traders noticed the U.S. Navy amassing ships near the Gulf in February…
French oil major TotalEnergies made the decision to buy large amounts of Middle East crude in March after its traders noticed the U.S. Navy amassing ships near the Gulf in February, its CEO told French newspaper Le Figaro in an interview published on Thursday.
"Our oil traders — and it's their job — noticed that the U.S. Navy was massing ships around the Persian Gulf in February. They decided to take a position counter to the market, which was trending down at the time, and to buy, saying something was about to happen," CEO Patrick Pouyanne said.
The Iran war broke out on February 28 when the United States and Israel launched large airstrikes on Iran.
Total was the sole buyer in March of Middle East crude as the Iran conflict drastically cut supply, snapping up around 70 Oman and Murban cargoes, or about 35 million barrels, trade data showed, which helped send the benchmark Dubai price to a record high of nearly $170 per barrel.
The Financial Times reported in March, citing sources, that Total made more than $1 billion on the trade by using financial instruments such as futures, options and swaps to bet prices would rise.
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