Asia/Pacific News
Respol Makes Singapore Expansion Moves
Spanish oil company Repsol will expand its Singapore trading desk as demand for crude and fuel oil in Asia grows, Reuters reports.
The company will hire one to two traders to its crude and oil products desk, which now has three members.
"We are still in the process of looking at some candidates," a Repsol source said.
The sources said the firm may move Brazilian, Ecuadorian, and Colombian crude grades to Asia, filling a demand created by the slow growth of locally sourced crude in the Asia-Pacific region.
Repsol will also lease about 104,000 cubic meters of capacity at a Vopak oil terminal in Singapore to blend imported oil for bunker fuel.
The firm's increased focus on Singapore oil trading comes despite heavy competition in the industry that has pushed some competitors to consolidate and reduce costs.
"It's true that margins are tighter now, but we can still make some small profit," the Repsol source said.
"We can take advantage of our knowledge and position in the Latin America market."
The company has been moving more fuel oil from Spain to Singapore since the start of the year, taking advantage of premiums that are typically higher in Asia than Europe, industry sources said.
Three players, including Alliance Oil Trading Pte Ltd (AOT), exited the Singapore bunker market in January.
