Commodity Traders are the Market Makers of a New Era

Jose Chalhoub, an energy and political risks analyst at Jose Parejo Associates, with 13 years of experience at Venezuela’s PDVSA, discusses the crucial role of commodity traders in balancing markets and managing supply disruptions. These traders, such as Glencore and BGN, play a vital role in ensuring the flow of energy, food, and raw materials amidst geopolitical instability and market uncertainties. Leveraging arbitrage and flexibility, traders help stabilize prices, reroute cargoes, and mitigate market volatility. Their strategic interventions are essential in preventing supply shortages and maintaining market stability, making them indispensable agents in today’s global trade landscape.