Falling oil price increases of raw major trading companies Activity

Some major oil trading companies in the world says it expects to increase activity levels this year as a result of lower oil prices in the international markets.

Although the oil trade prohibitively expensive and require a major oil trading companies Availability funding with dozens of banks billions of dollar lines, the significant decline in oil prices since the summer of last year led to a decline in the value of medium crude shipment of $ 115 million to sixty million dollars, which made the cost of under-funded.

That is emerging in the oil sector is a downside for banks and companies in oil trading, which is that the latter does not take advantage of its available lines of credit in full, and banks do not want to continue this funding lines untapped, and therefore resort crude trade for some of the solutions companies, including increasing the size of its business to keep those lines when they need them again when oil prices rise.

The Big Five

Controlled by Vitol and Glencore and Trafigura and Ganfor and Miercurea companies to more than 10% of oil and its derivatives trade in the world, and almost total revenues of these companies from the oil and commodity activity more than half a trillion dollars.

Says Jack Ernie CFO Ganfor one company -the of the five largest companies in the world in the field of trade V- The relationship with the task of banks, especially in times of falling oil prices, and to maintain this relationship must ensure that the exploitation of available credit lines for companies across maintain the trade volume .

Refers CFO of Miercurea that the issue of bank lines untapped encourage the growth of Activity oil trade, but his counterpart in Vitol company trivialize the seriousness of survival untapped funding lines, explaining that banks used to market fluctuations and is in no rush to withdraw liquidity because they recognize that oil prices will rise at the end.