FUEL / OIL TRADING
Middle distillates are used primarily as fuel for heating, lighting and transportation. When crude oil is refined, middle distillates make up between 25% and 40% of the oil’s product yield. Given the demand and higher value of middle distillates, however, heavier distillates are often cracked to increase the overall quantity of middle distillate produced.
Occidental trades in crude oil and a narrow range of middle distillates, including jet fuels and diesel oils, such as marine gasoil. Our knowledge and experience helps us to maintain strong enduring local partnerships. Our partners lease storage facilities in Europe and the US where we typically take advantage of structural imbalances vis-à-vis supply and demand. Within this context, our expertise and ability to flexibly manage supply chains is absolutely critical. We also liaise closely with other trading desks.
Our well-integrated team is able to shift its trading style and focus in line with changing market conditions. Paramount to our success is the ability to coordinate activities globally and to interact with other parts of the supply chain.
GOLD ARBITRAGE
We purchase and simultaneously resell gold bullion (fully refined gold bars that are 99.95% pure gold) and doré bars (partially refined gold bars that are about 92%+ pure gold). Typical contracts run for twelve months with rolls and extensions. We provide total transparency to our investor partners by providing them with continuous information about each tranche and a complete reconciliation of returns after each tranche. Returns are paid to investor partners after each tranche, not monthly or quarterly or annually.
Occidental only transacts in non-conflict gold. Most gold trading takes place in a global over-the-counter (OTC) wholesale market. While OTC markets are amongst the deepest and most liquid markets in the world, they are often opaque as most transactions are dealt outside of any exchange. Our purchases and sales are done by private agreement.
DIAMONDS
Occidental Commodities assembles parcels of industrial and jewelry grade diamonds directly from mines and brings them to market in their natural uncut form. Our diamonds are examined by gemologists for size (carats), color, form (sawable/makable), and clarity. Occidental only transacts in non-conflict diamonds from countries participating in the Kimberly Process Certification Scheme (KPCS).
ALUMINUM
Consumption of aluminum is growing in the aerospace industry, while the upturn in the construction industry in continental Europe is also stimulating demand. In addition, demand in mechanical engineering and packaging markets continues to increase. The automotive industry is a key growth driver for the industry, not only due to the continued strong growth in private transportation worldwide but also to the increasing pressure to utilize lightweight materials to protect the environment and the climate.
We trade in non-London Metal Exchange (LME) registered/branded aluminum ingots conforming to LME Grade A1 specifications—99.7% purity. Typical ingot weight is 25 kg on pallets of 1 meter by 1 meter by 0.15 meter banded by steel and aluminum bands. Sourcing is typically from China.
COPPER
Global demand for copper continues to grow. World refined usage has more than tripled in the last 50 years thanks to expanding sectors such as electronic products, building construction, industrial machinery and equipment, transportation equipment, and consumer and general products.
Occidental trades in non-LME registered/branded copper cathodes conforming to LME Grade A specifications – 99.97% purity. Sheet size is typically 914mm x 914mm x 12mm and weighs about 25 kg. The packaging is by bulk, palletized banded by steel and aluminum bands. Sourcing is typically from Africa and Latin America.
GRAINS
Not all grain is traded: in fact, most production never crosses a border. For example, only about 18 percent of world wheat production and 10 percent of corn production is traded globally. The figures for oilseeds are higher: around 34 percent of soy crosses a border and 75 percent of palm oil production, making this last more typical of traditional tropical commodities, such as tea, coffee, and cocoa, which are grown in one part of the world (the tropics) for consumption elsewhere.
Trade in agri-food commodities is increasingly dominated by exports and imports of processed and value-added products, while trade in bulk commodities, which until the early 1980’s accounted for most agricultural trade, now accounts for only one-third of the total.
Occidental brokers physical stock that is bulky, expensive to store, and harvested only at certain periods of the year. Prices are as much about anticipated supply and demand as they are about existing conditions.
We source wheat, yellow food corn for human consumption and soybeans all in bulk.
