London oil trader BB energy has become one of the few companies in the world that have benefited from the fall in the value of the North American WTI crude oil to negative values, announced may 14, the Agency Bloomberg with reference to sources.
20 APR quotes of WTI for the first time in history fell below zero, and the owners may futures pay extra to those who have agreed to take their oil. According to the interlocutor of the edition, 20 April, the company BB energy has acquired 250 thousand barrels of oil.
The Agency noted that the BB Energy was free store, which allowed her to earn. Price contract Bloomberg could not figure out, but, according to the Agency RBC, the maximum BB Energy could get (except oil) approximately $9.4 million.
BB Energy is a family trading house. The company was founded in Lebanon in 1937, where it first traded grain and asphalt. Now the Central office of BB Energy is located in the UK, four years ago, the company opened its representative office in the United States. The company as reported on its website, 250 employees. In a year the company processes 20 million tonnes of oil and oil products.
Amid a surplus of oil on the market caused by falling demand due to pandemic coronavirus, 20 APR WTI crude oil fell to minus $40 per barrel. The day the auction ended at $37,63. The Agency RBC reviewed the trading statistics and noted that at zero price WTI held more than 2 thousand transactions, at a price of minus $38 was recorded a few dozen transactions.
The edition of ICIS explainedthat traders were trying to sell may futures, because April 21 was the last day they were traded. However, due to the limited number of customers, the rate has moved into negative territory. Padanie the value of the contracts with maturities in June and later it was negligible.
Thus progress in early April, the agreement OPEC+ on the reduction of oil production to 9.7 million barrels per day in may and June, which is about 10% of the total placed on the market of raw materials, strong impact on the stock did not have. As the Agency Reuters, this is not enough to compensate for the overabundance of raw materials on the market.