Derivatives
As one of the world’s largest independent traders of physical oil and refined products, Vitol is perfectly positioned to give our customers access to the global oil derivatives arena.
Our Derivatives team was established to deal in the forward markets for crude oil and its associated products, which were driven mainly by a high degree of volatility in oil prices. This began with the oil crises back in the 1970s, and ever since the market has been characterised by significant price volatility. Today, airlines, ship owners, large industrial consumers and power generators routinely use the forward markets to hedge their oil price risk.
Our clients look to Vitol to lock in a degree of certainty in the price of oil, whether they produce it or use it. By being able to tie the paper and the physical together, we are able to deliver advantages to clients which banks and financial institutions cannot.
• Vitol’s substantial physical business has made it an expert in risk management and OTC derivatives markets. Using these skills Vitol can provide risk management for its portfolio of assets as well as its customer network.