Fuel Trading

FUEL TRADING

Middle distillates are used primarily as fuel for heating, lighting and transportation. When crude oil is refined, middle distillates make up between 25% and 40% of the oil’s product yield. Given the demand and higher value of middle distillates, however, heavier distillates are often cracked to increase the overall quantity of middle distillate produced.

Vermilion trades in a narrow range of middle distillates, including jet fuels and diesel oils, such as marine gasoil. Our knowledge and experience helps us to maintain strong enduring local partnerships. Our partners lease storage facilities in Europe and the US where we typically take advantage of structural imbalances vis-à-vis supply and demand. Within this context, our expertise and ability to flexibly manage supply chains is absolutely critical. We also liaise closely with other trading desks.

Our well-integrated team is able to shift its trading style and focus in line with changing market conditions. Paramount to our success is the ability to coordinate activities globally and to interact with other parts of the supply chain.