How TotalEnergies' Trading Desk Secured a Billion-Dollar Windfall

TotalEnergies made over $1B in March by aggressively trading oil from the UAE & Oman amid Strait of Hormuz tensions, boosting its stock price significantly.

A surge in geopolitical risk became a significant profit driver for French energy giant TotalEnergies SE in March. The company's traders capitalized expertly on heightened tensions around the Strait of Hormuz, a critical chokepoint for global oil supply.

Capitalizing on Market Dislocation

As concerns mounted over the vital shipping lane, through which approximately one-fifth of the world's oil flows daily, demand for crude from the United Arab Emirates and Oman increased sharply. This drove the prices of Murban and Oman crude grades substantially higher. TotalEnergies responded with an aggressive purchasing strategy, acquiring nearly all available oil shipments from the UAE and Oman for May delivery. This activity amounted to roughly 70 cargoes, which was about double the volume purchased in the previous month.

To optimize its market position, the firm employed a combination of futures, options, and swaps. The result was a trading profit exceeding one billion U.S. dollars for the month, achieved alongside a 50 percent increase in trading activity compared to February.

Conventional Strength Amid Transition

While TotalEnergies has pursued a multi-year strategy to diversify into renewable energy, March's performance underscores the continued, substantial contribution of its conventional oil trading business to overall profitability. The company's willingness to act decisively during periods of market uncertainty, when other participants may hesitate, proved highly lucrative.

This operational strength provides a solid foundation for the company's equity performance. TotalEnergies' share price has advanced approximately 59 percent from its April 2025 low near 49 euros. The stock now trades just below its 52-week high of 80 euros.