Credibility and Long-Term Trading Relationships
From our company archive. Market commentary reflects its original publication date.
Over the past few years I’ve noticed a significant change in our industry.
The companies that consistently secure product are rarely the ones paying the highest premiums. More often than not, they’re the ones that have invested the time to build credibility, maintain financial discipline and develop long-term relationships with counterparties.
In today’s market, physical trading is no longer just about price.
It is about execution.
Can you perform when the market moves against you?
Can you finance the transaction without changing the agreed commercial terms?
Can you nominate vessels on time?
Can you deliver complete documentation without delays?
Can you complete KYC and compliance efficiently?
These are the factors that determine whether a transaction closes successfully.
At Drakensberg Energy we spend as much time evaluating the quality of a transaction as we do negotiating its commercial terms. A competitive price has little value if the deal cannot be executed.
The energy markets will continue to evolve, but one principle remains constant: reliable execution builds long-term partnerships.
I’m looking forward to sharing more observations from the physical energy markets, covering refining, logistics, international trade, risk management and the commercial realities that shape our industry.
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