Volumes plunge in first quarter for Singapore oil traders

Singapore oil traders suffered a rough first quarter as physical and paper businesses plunged as much as 30% compared with first quarter last year. Another trading official estimates overall business sank a quarter in the first three months. ‘”The market has grown very quiet. Despite reports that China’s economy is stirring, this has not boosted China’s demand for oil, as refineries there have been running a lot of crude and have a plenty of products themselves,” the official said. This is perhaps reflected in the continuing ‘musical chairs’ in the country, with new players entering market and existing ones expanding. Noble Group is reportedly starting physical fuel oil trading worldwide after hiring five traders from Trafigura, who will be based in New York, London and Singapore. Trafigura itself has just added a three-person biofuel-trading desk in Singapore, where it has 65 people, including 13 traders, and plans to go into the bunkering business here next year, director Mike Scott said last month. Meanwhile, the former Singapore trading team led by ex-Shell executive Michael Ng at India’s Reliance Industries has apparently gone to Kangqi, a mainland China trading house. (April 7, 2009)