Eni, one of Europe's largest oil companies, is in talks with Mercuria, a major commodity trading firm based in Geneva, about joining forces on oil and gas trading. The Italian company is considering a deal after scaling back its own trading operation years ago, according to the Financial Times (June 30, 2026).

These conversations started earlier than you might think. Reuters first reported the talks in January 2026. What's new is that the discussions have become more serious — the companies are now looking at how an actual partnership would work, not just whether it should happen.

Mercuria is one of the world's biggest independent commodity traders. It buys and sells crude oil, refined fuels, natural gas, and electricity. For Eni, partnering with Mercuria would mean instant access to the trader's systems, supplier contacts, and expertise. Otherwise, Eni would need years to build all that from scratch.

Eni used to run its own trading operation but cut it back. Why would the company want to do trading again? Because oil majors that run their own trading desks make extra profit. They earn money not just from drilling and selling oil, but also from betting on price changes and finding opportunities to buy cheap in one place and sell expensive in another. Shell and BP both run large trading operations and profit from it.

Right now, energy markets are volatile. European natural gas prices swing sharply. Traders can buy and sell liquefied natural gas between different continents to profit from price differences. Oil prices shift based on sanctions and production decisions. A trading team that is good at spotting these opportunities and acting fast can earn significant money.

If Eni and Mercuria partner, they would set up a joint venture — a company they both own and run together. They share the profits and the risks. This is different from Eni simply buying a trading desk outright. A joint venture lets Eni tap into Mercuria's existing relationships with suppliers and buyers. It also means Eni does not have to put as much of its own money into the operation. Mercuria gets something too: access to Eni's oil fields and guaranteed customers for oil. It also gets the credibility of being backed by a major oil company, which matters because banks have largely pulled out of lending to commodity traders.

What is still unclear is exactly what the partnership would trade. Would it be just oil and refined fuels? Or would it also include natural gas? Until Eni and Mercuria announce a deal, we do not know.

For Eni as a company, this fits a bigger pattern. Eni is restructuring itself. It is selling some oil fields, spinning off subsidiaries, and managing its renewable energy business. The reason: the company needs to make money during volatile markets while also committing to the energy transition away from oil and gas. A trading operation can help because it makes profit from price swings, not just from whether oil is expensive or cheap overall.

There is a reason trading seems attractive right now. European natural gas is in short supply compared to before 2021. Different ocean basins have different prices, which traders can exploit. Oil prices have widened because of sanctions and production cuts. But here is the caution: these favorable conditions will not last forever. Any decision to create a trading partnership should not rest entirely on conditions that are temporary.

No deal has been signed. Eni and Mercuria are still working through the details. This matters because the first reports of talks came more than five months ago, and nothing has closed yet. The recent reporting suggests progress, but closing a complicated deal like this can take a long time.