Total "Buy and Hold" strategy in crude oil earns over $1 billion, potentially the largest single profit in oil market history

According to Mars Finance, on March 30, due to the escalation of the situation in the Middle East and the blockage of the Strait of Hormuz, TotalEnergies made large-scale purchases of spot crude oil from the Middle East in March and implemented a long strategy with derivatives, accumulating over $1 billion in profits, potentially creating the largest single trade profit in the history of the oil market. Reports indicate that TotalEnergies “secured” about 70 vessels of crude oil from the UAE and Oman scheduled for loading in May, with procurement scale doubling compared to February, and establishing a dominant position amidst a sharp decline in market liquidity, pushing Dubai crude prices from about $70/barrel to $170/barrel. Industry insiders point out that under the circumstances of disrupted pricing benchmarks and reduced deliverable crude oil, Total has achieved significant influence over prices through concentrated positions and operations linked to “paper market” tools like futures and options. Meanwhile, high oil prices have also intensified cost pressures on Asian buyers and further impacted the existing crude oil pricing system.