TotalEnergies' oil trading division saw its profits double to approximately $1 billion in the last quarter of 2025. This significant increase highlights the division's ability to capitalize on market volatility, a strategy that sets it apart from the company's more traditional upstream and downstream operations.
This $1 billion profit surge contributes to the trading arm's estimated annual earnings of around $2 billion, as stated by CEO Patrick Pouyanné. The trading desk, which earned $182 billion in total revenue in 2025, thrives on market disruptions, performing particularly well when prices swing wildly. For instance, early in 2026, tensions in the Middle East caused oil price jumps, allowing TotalEnergies' traders to profit, reportedly clearing more than $1 billion on those bets in a single period.
The trading team's success is attributed to its strategic decision-making, such as their move in February to buy large quantities of Middle East crude after observing U.S. Navy activity in the Gulf. This contrarian stance, ahead of anticipated supply disruptions due to regional conflict, proved highly profitable and drove the benchmark Dubai price to nearly $170 per barrel. The company reportedly made over $1 billion on this trade through financial instruments like futures, options, and swaps.
Despite the substantial gains, TotalEnergies' trading practices have drawn scrutiny. The U.S. Commodity Futures Trading Commission (CFTC) is reportedly examining a surge in oil futures trading that coincided with U.S. President Donald Trump's postponement of strikes on Tehran in March, with Total Oil Trading SA being one of at least three firms of interest. However, the market has reacted positively to TotalEnergies' trading windfall, with shares hitting a new 52-week high around $93.10 and analysts upgrading their recommendations to "buy."
European oil majors, including TotalEnergies, BP, and Shell, collectively reaped billions from the energy supply crunch caused by the Iran war in the first quarter, unlike their more cautious U.S. rivals. TotalEnergies expects a significant boost to first-quarter earnings from trading, even as the war reduced about 15% of its production. The company, which produced 2.5 million barrels of oil equivalent per day last year, traded 8 million barrels per day of physical oil volumes and 85 million barrels per day in derivatives.
