Energy markets
They are becoming increasingly sensitive to operational disruptions due to significant inventory reductions in the first half of this year, trading company Glencore said today.
Reporting its results for the period from January to June, Glencore said that the volatility was such that the company waived its $200 million risk value limit (VaR) for the period from March to May.
Glencore uses VaR to estimate potential losses on risky positions over a certain period of time with a certain level of confidence based on historical price changes. It says that the figure peaked at $456mn in the first half of the year, when it averaged $165mn. The figure averaged $72 million over the comparable period in 2025.
Glencore expects market volatility to remain "above historical norms" during the second half of this year, "although at a lower level than in the first half of the year."
Glencore today reported adjusted earnings before interest and taxes, depreciation and amortisation (Ebitda) for its marketing business, which includes trading operations, rose to $3.64 billion in January-June from $1.7 billion a year earlier. It says the growth was driven primarily by oil and gas trading operations.
Adjusted Ebitda for the company's industrial business, which includes extensive mining operations and a small crude oil concern, was $6.5 billion, up 72% from a year earlier.
Glencore's total profit in the first half of the year was $4.4 billion, compared with a loss of $655 million a year earlier.
