In the first quarter of the year, oil and gas giants TotalEnergies, Shell, and BP reported stronger-than-expected profits, attributing much of their success to robust performances from their trading desks during a period of heightened market volatility caused by the Iran war and disruptions in the Strait of Hormuz [1]. These trading units, which buy, sell, and transport physical oil and gas while managing price risks, tend to outperform during volatile markets, although their profits are typically not disclosed separately [1].
TotalEnergies posted a quarterly net income of $5.4 billion, marking a 29% increase from the previous year, with CEO Patrick Pouyanné highlighting a 'very strong performance in March' from crude oil and petroleum products trading activities [1]. Shell reported first-quarter adjusted earnings of $6.92 billion, up from $5.58 billion a year ago, with CFO Sinead Gorman noting 'significantly higher trading and optimization contributions' [1]. BP's net profit reached $3.2 billion, more than doubling its profit from the same period in 2025, and the company described its oil trading contributions as 'exceptional' [1].
Analysts estimate that the trading units of TotalEnergies, Shell, and BP earned between $3.3 billion and $4.75 billion extra in the first quarter compared to the previous quarter, underscoring the significant impact of trading activities during times of market stress [1]. Maurizio Carulli of Quilter Cheviot Investment Management emphasized that these trading operations are supported by the companies' own hydrocarbon production and physical assets, distinguishing them from financial speculation [1].
Looking ahead, Carulli suggested that U.S. oil companies may consider expanding their trading units, especially as oil market influence shifts from OPEC to the U.S. in recent years [1]. Clark Williams-Derry, an energy finance analyst at IEEFA, cautioned that while trading can be a source of long-term profit, it can also introduce volatility and cash management challenges [1].
CONCLUSION
The first quarter saw oil majors TotalEnergies, Shell, and BP deliver strong profits, driven by their trading desks' ability to capitalize on market volatility. This performance highlights the growing importance of trading operations in the energy sector and may prompt U.S. oil companies to expand similar capabilities. However, analysts note that while trading can boost profits, it also brings increased volatility and cash management complexities.