Asia Oil Latest: Trafigura Says Its China Oil Business Is Strong

The outlook for oil prices, crude demand in top importer China, and the longevity of OPEC+ supply cuts are set to be among the key topics at Asia’s biggest gathering of the industry’s traders and executives, which kicked off in Singapore on Monday.

(Bloomberg) — The outlook for oil prices, crude demand in top importer China, and the longevity of OPEC+ supply cuts are set to be among the key topics at Asia’s biggest gathering of the industry’s traders and executives, which kicked off in Singapore on Monday.

Attendees at the annual APPEC conference by S&P Global Commodity Insights will also have an opportunity to reflect on Russia’s continuing war in Ukraine, which has so far spanned 18 months, rising flows of Iranian crude, and the transition away from fossil fuels in the transport sector. All times are local.

Trafigura Says Its China Oil Business Strong (12:10 p.m.)

The oil and metals segments of Trafigura Group’s business in China remain strong, said Co-Head of Oil Trading Ben Luckock. The Asian nation’s property market is bad, but other parts of the economy aren’t so poor, he added.

OPEC+ cuts have led to elevated oil prices, and the global gasoil structure is extremely strong at the moment, signaling pockets of tightness, he said.

Vitol Doesn’t See Big Jump in Iran’s Exports (11:08 a.m.)

There’s unlikely to be a huge bump in Iranian exports if sanctions on the OPEC producer are eased, said Vitol Group Chief Executive Officer Russell Hardy. Gains in production will also be modest because output has been creeping higher over the past couple of years, he added.

The price cap on Russian crude is working in that it’s creating lower revenue for Moscow, but the measure has led to higher shipping costs, Hardy said. An increase in Venezuelan crude flows won’t shake up markets, he added.

Singapore Seeks to Build Biofuels Trade (9:53 a.m.)

Singapore has continued to attract companies to expand their global footprint from the city-state, with major energy and agriculture groups building operations to trade biofuels, carbon offsets and crude.

A key goal is to grow new trade flows for renewable fuels as the global energy transition gathers pace, said Low Yen Ling, the minister of state at the trade and industry ministry. Over 60 companies including Exxon Mobil Corp., Repsol SA, Archer-Daniels-Midland Co. and Bunge Ltd. are trading biofuels from Singapore, Low said.  

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