Traders face costs from Trump’s social media uncertainty

Commodity traders are facing challenges due to US President Donald Trump’s frequent social media posts. His tweets create uncertainty, impacting investment plans and operations in the commodities market. Some traders, like those at Trafigura, are even considering changing their working hours to match Trump's unusual tweeting schedule. Richard Holtum, Trafigura's new CEO, mentioned that traders might work from 2 PM to midnight to adapt to the president's social media activity. Trump recently announced plans to impose a 25% tariff on countries importing oil from Venezuela. This news has left traders confused about the rules, creating extra work and slowing down decision-making. Bill Reed, CEO of US trading company CCI, noted that this uncertainty consumes many resources and keeps companies in a "wait and see" mode. Jeff Dellapina, CFO of Vitol, the largest independent energy trader, said Trump’s posts can overshadow their market research. This results in less risk capital in the market and tighter trading ranges for core commodities. Gunvor, another energy trading firm, highlighted a cautious approach due to tweet-driven volatility. CFO Jeff Webster mentioned that traders are working harder for less profit, indicating tough trading conditions. Despite these challenges, some trading firms maintain a positive outlook. They see opportunities arising from market dislocations that could benefit traders who are prepared to navigate the volatility. Guillaume Vermersch, CFO of Mercuria, stated that disruptions often present chances for traders to offer solutions and help customers manage their risks.