Mercuria Energy Secures $2 Billion Emergency Credit as Traders Squeezed

Swiss trader Mercuria Energy Group Ltd. secured a $2 billion emergency credit facility from banks as commodities prices surge following Russia’s invasion of Ukraine, Bloomberg News reported. The credit facility, which was secured earlier this month, can be renewed or closed in six months time. Trading houses have been seeking funds to maintain their physical and derivative positions as prices of everything from natural gas to metals soar. With markets upended and sanctions threatening to disrupt raw materials supplies, traders are facing a liquidity squeeze that could reshape the sector. “We do have to size our activity and our risk appetite with our financing capability. It’s as brutal as that,” Frederic Barnaud, group chief strategy and commercial officer at Mercuria, said Wednesday in a panel discussion at the FT Commodities Global Summit in Lausanne. Geneva-based Mercuria posted a record profit in 2020 as it cashed in on wild swings in gas, power and oil markets during the pandemic. Read more.