Glencore Takes Over as Primary Crude Oil Supplier for Prax Group's Lindsey Refinery

Glencore Takes Over as Primary Crude Oil Supplier for Prax Group's Lindsey Refinery

Hector Diaz
2 min read

Glencore's Strategic Moves Impacting Global Oil Market

Glencore's recent takeover as the primary crude oil supplier for Prax Group's Lindsey refinery in the UK, ousting Trafigura, is a significant development in the oil industry. The refinery, with a daily processing capacity of 113,000 barrels, mainly deals with grades that contribute to the global benchmark, Dated Brent, which secures a steady market for Glencore's cargoes. This strategic move follows Glencore's partnership with Indonesia’s PT Chandra Asri Pacific in acquiring an oil refinery and chemicals site in Singapore.

Meanwhile, the oil market has seen some stability after a recent drop, with Brent prices trading below $80 per barrel, influenced by OPEC+'s decision to resume supply and ongoing geopolitical tensions in the Middle East and Europe. Despite these market pressures, the industry has shown caution, with the number of active US oil rigs hitting a low.

Key Takeaways

  • Glencore replaces Trafigura as crude oil supplier for Lindsey refinery, processing 113,000 barrels daily.
  • Deal ensures Glencore a steady buyer for Dated Brent-linked cargoes, impacting global benchmarks.
  • Glencore's recent acquisition includes an oil refinery and chemicals site in Singapore in partnership with PT Chandra Asri Pacific.
  • Oil prices have steadied after a weekly drop, with Brent below $80 and WTI near $76.
  • Geopolitical tensions and economic data continue to influence the oil market, affecting demand outlook.


Glencore's takeover of crude oil supply to Prax Group's Lindsey refinery has a significant impact on global benchmarks, given the refinery's crucial role in processing Dated Brent grades. This shift, combined with Glencore's expansion in Singapore, signifies a strategic move to secure market presence amidst fluctuating oil prices and geopolitical tensions. The stabilization of oil prices below $80, influenced by OPEC+'s supply restoration and regional conflicts, reflects caution within the industry as seen in the low number of active US oil rigs. Long-term implications suggest that Glencore's moves could enhance its market stability and influence, potentially affecting competitors and pricing dynamics in the energy sector.

Did You Know?

  • Glencore: A multinational commodity trading and mining company with a significant global presence in the production, refinement, and trading of metals, minerals, energy products, and agricultural products.
  • Dated Brent: A key benchmark for crude oil pricing, specifically referring to the North Sea Brent crude oil, influencing the cost of crude oil globally.
  • PT Chandra Asri Pacific: An Indonesian company that focuses on petrochemical and chemical production, strategically partnering with Glencore in Singapore to expand into the Asian oil refining and chemical markets.

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