What We Do
We advise companies involved in commodities markets on their strategy, trading operations, and risk approach. We support businesses in unlocking new value from commodities markets, setting up new trading organizations that grow returns from existing production or consumption, helping them create effective, efficient companies. We combine deep expertise in specific commodity markets with strong knowledge of strategy, operations, and risk management.
Established traders have steered volatile commodity flows over the past year, demonstrating their ability to master times of uncertainty. By prioritizing trading agility and efficiency, they will solidify their pivotal position in connecting the global supply and demand of commodities, even in the face of geopolitical eventsAdam Perkins
For major commodity producers and consumers, active trading strategies can help deliver more value. From optimizing asset performance to hedging against growing market and liquidity risks, a robust trading strategy unlocks the untapped potential of trading adjacencies and interfaces, driving commercial optimization and maximizing overall valueJoanne Salih
Commodities traders are extremely well-poised given dramatic volatility and changes in global demand and supply dynamics. As returns grow, so will competition – and ensuring that traders have strong strategies, use advanced analytics, and create the right internal incentives and structures will help realize their enormous potentialErnst Frankl
As ‘old’ and ‘new’ commodity markets mature, it will be a strategic imperative for producers and consumers of those commodities to leverage their inherent advantages – like existing assets, product and capacities – and to rapidly mature their commercial models to both manage the increased risks from these markets; and to actively capture value at stakeAbhi Bhuchar
The necessity of fighting climate change is creating new sources of demand for commodities and creating interlinkages between different value chains. Traders that are responsive to these seismic shifts can capture enormous value by capitalizing on new sources of optionality – and will be critical to meeting climate targetsChristian Lins
What We Think
For centuries, traders have played a vital role in ensuring that global goods arrive at the right place, at the right time, to the right specifications, and for the right price. The commodity trader serves as a crucial facilitator of global trade, ensuring the continuation of global commerce, even amidst fluctuating prices and a constantly changing environment. With global demand and supply drivers undergoing structural changes – due to geopolitics, the energy transition, and more – their role in our society – and ability to create value – is only going to grow.
When margin calls hit the billion-Euro mark in 2022, European utilities lacked processes and tooling that were able to manage their liquidity.
Risk management functions had typically focused on market and credit risk, with liquidity deprioritized or ignored. Treasury processes were designed to operate based on yearly budgets with quarterly reviews, which were no match for the liquidity needed to manage the ‘new norm’ of volatility and higher prices. And rate rises of 300 basis points meant financing grew more expensive and keeping track of working capital became imperative.
While price volatility has been at its highest in Europe, the structural issues underpinning liquidity crises can be seen in examples across the world.
Who We Are
Abhi Bhuchar Partner, Asia Pacific Head of Energy and Natural Resources
Thomas Fleming Partner
Alexander Franke Partner, Head of European Oil and Gas
Ernst Frankl Partner, Global Head of Risk and Trading
Christian Lins Partner
Adam Perkins Partner
Mark Pellerin Partner, Americas Head of Energy and Natural Resources
Joanne Salih Partner