Trading
With more than four decades of experience, Koch companies have interests in and access to major international trading regions in the United States, Europe, Asia and the Middle East.
Products traded by Koch Supply & Trading companies include:
Crude Oil:
global crude oil markers (WTI, Brent, Dubai) and many grades of oil priced off these markers
Refined Products & Derivatives:
light and middle distillates (naphtha, jet, heating oil and various grades of diesel fuel);
unleaded gasolines and their components; fuel oil; ethanol; petrochemicals such as benzene,
toluene, mixed xylenes, araxylene and styrene; and intermediate feedstocks such as vacuum
gasoil and straight-run fuel oil
Natural Gas Liquids & Olefins:
ethane, propane, butane, natural gasoline, ethylene and propylene
Natural Gas, Power & Emissions:
natural gas, electric power and various environmental markets
Metals:
aluminum, copper, tin, zinc, nickel, lead, precious and industrial metals
Financial:
foreign currency, interest rates and exchange-traded commodities
Freight:
clean and dirty tankers, barges and derivatives based upon retail prices to hedge freight
surcharges
Risk Management
Koch Supply & Trading companies tailor products to help counterparties manage price and cost volatility, creating a more fungible base commodity product and financial liquidity in pricing indices.
This is accomplished through swaps, used for locking in purchase or sale prices, and other customized derivatives designed to manage exposure to price risk.
Logistics, Operations and Technical Services
Koch Supply & Trading's marine logistics company, Koch Shipping Inc., seeks to ensure that commodities bought and sold by its companies arrive safely and on time. Koch Shipping manages crude and product flow and captures economies of scale by selling parts of cargo space to others through its transshipment and break-bulk operations.
In the past five years, Koch Shipping has safely managed about 3,100 charters moving more than a billion barrels of crude, petroleum products, chemicals and nitrogen fertilizers. Koch Shipping's managers review performance of tankers long before a drop of product reaches their hulls. This vetting process is designed to ensure that known-quality tank vessels are available for use.
Be Principled