Trading
Building on more than 40 years of trading experience, Koch Supply & Trading companies have developed a global portfolio through a dynamic trading infrastructure and diverse market presence.
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 components; fuel oil; petrochemicals such as benzene, toluene, mixed xylenes, paraxylene and styrene; and intermediate feedstocks such as vacuum gasoil and straight-run fuel oil
Ethanol:
CBOT, Chicago Platts and crush margins
NGLs, Olefins & Resins:
ethane, propane, butane, natural gasoline, ethylene, propylene, polyethylene and polypropylene
Natural Gas, LNG & Emission Allowances:
natural gas, LNG, emission allowances and related commodity indices and markets
Metals:
aluminum, aluminum alloys, copper, tin, zinc, nickel, lead, molybdenum and cobalt
Financial:
currencies and interest rates
Fuel Surcharges:
derivatives based on retail price indices
Freight:
swaps and options on tanker and container rates
Risk Management
Koch Supply & Trading's energy derivatives and metals groups 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 and Operations
Koch Supply & Trading's marine logistics company, Koch Shipping Inc., manages product flow to ensure commodities bought and sold by its customers arrive safely and on time. Koch Shipping offers freight trading, ship inspections and worldwide ship operations. 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 vessels are available for use.
Since 2000, Koch Shipping has managed 6,500 charters moving about 1.6 billion barrels of crude, petroleum products, and chemicals.
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