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

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(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.Most Read from BloombergDiamond Prices Are in Free Fall in One Key Corner of the MarketMercedes Bets on Range Boost in Swipe at Tesla’s EV LeadershipBurning Man Death Under Probe With Thousands Still StrandedZelenskiy Says He’s Removing

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.The oil and metals segments of Trafigura Group’s business in China remain strong, said Co-Head of Oil Trading Ben Luckock.

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.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 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.

 

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