TotalEnergies Expands Oil Trading Amid Middle East Supply Disruptions

French energy major TotalEnergies is reported to have taken a dominant position in Middle Eastern crude markets in March, capitalizing on supply disruptions linked to the ongoing conflict involving Iran.

According to a report by the Financial Times, the company generated more than $1 billion (€868 million) in trading profits after acquiring large volumes of crude oil cargoes across the region. The purchases were made as tensions in the Strait of Hormuz disrupted shipping routes and reduced the availability of key oil supplies.

Sources cited in the report said TotalEnergies secured around 70 cargoes of crude from the United Arab Emirates and Oman for May loading, more than double its February purchases. The company has not publicly commented on the claims, stating it does not disclose details of its trading activities.

The surge in trading activity followed a breakdown in the pricing mechanism for Middle Eastern oil. S&P Global Platts, which manages the Dubai crude benchmark, suspended nominations for oil grades that required transit through the Strait of Hormuz earlier this month. The decision came after major shipping firms halted operations in the area due to security concerns.

The suspension effectively removed three of the five crude grades typically used in the benchmark, leaving only supplies from Abu Dhabi and Oman. Platts said the move reduced available crude in the benchmark by about 40 percent, creating a tighter and less liquid market.

With fewer participants able to operate in the disrupted environment, TotalEnergies was able to secure a significant share of available contracts. Trading activity increased sharply in March, but the report indicated that the French firm was the only trader to accumulate enough partial contracts to assemble full cargo shipments.

Oil prices responded dramatically to the disruption. Dubai crude rose from about $70 per barrel before the conflict to a record high near $170. Meanwhile, Brent crude climbed to around $120 per barrel in mid-March before easing slightly.

TotalEnergies Chief Executive Patrick Pouyanné described current market conditions as unprecedented, citing unusually high refining margins and widespread disruption in oil product markets. He warned that prolonged conflict could push European natural gas prices significantly higher in the coming months.

The company has also faced operational challenges. It said earlier this month that production in parts of Qatar, Iraq, and offshore UAE had been reduced or halted, accounting for about 15 percent of its global output. Despite this, rising oil prices have helped offset losses.

The spike in crude prices has placed pressure on Asian refiners, some of whom are reportedly seeking alternatives to the Dubai benchmark. Analysts say the situation highlights how geopolitical tensions can quickly reshape global energy markets and create opportunities for major trading firms.