What are the main impacts across all business divisions of a physical trading ho

use when prompt month crude contracts are trading $50 vs $100
What I assume you are implying is that prices of commodity have gone down drasti
cally. This type of price decline is systematically induced due to either fundam
ental supply glut or complete industrial demand breakdown owing to financial dis
tress in economy or a financial breakdown.
With such a reduction a CTH is bound to face numerous risks mainly, counterparty
risk, credit risk, basis risk,to name a few. Also the day to day margin require
ment in case the company has hedged a future oil requirement will severely impac
t the liquidity of the firm.
There could also be a possibility of self hedge if the company is into different
levels of value chain, say logistics and storage
But a Large scale CTH has all the risks in control. So as such there isn't much
impact since all the risks are hedged or controlled.
I grew up in New Delhi and Since in second year had a penchant for trading, so a
s soon as I got placed in Jaypee Commodities, I knew I had discovered my nirvana
. I have always been fascinated by Trading and as such always have enjoyed my wo
rk. After moving to Futures First I also enrolled for executive MBA program with
IIFT to gain valuable insights into International trade and Finance. I have als
o cleared Level I CFA but due to paucity of time and having become a family man,
haven't been able to take it further seriously, though, I intent to complete it
in next attempt.