Trafigura Says Oil to Face More Downward Pressure: APPEC Update

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(Bloomberg) — The fallout from Russia’s invasion of Ukraine and the outlook for a volatile market are set to be key topics at Asia’s biggest gathering of oil traders and executives, which entered its second day in Singapore.

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The annual Asia Pacific Petroleum Conference returned to an in-person format for the first time since the pandemic erupted. Attendees are mulling over the impact of upcoming European Union sanctions on Russian oil flows, the energy transition, and the prospect for a winter power crunch. All times are local.

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Trafigura Says Pressure on Prices to Continue (11:09 a.m.)

There’s downward pressure on oil prices and it may continue for some time, with the market facing a stronger US dollar and recessionary fears, said Saad Rahim, chief economist at commodity trader Trafigura Group.

Macro factors are winning as moves in and out of currency markets have a big impact on oil prices, Rahim said. There are a number of dislocations in the market that are allowing trading companies to grow market share, he added.

Russia Insuring Most Oil Being Sent to BPCL (10:08 a.m.)

Most Russian oil cargoes that are flowing to India’s Bharat Petroleum Corp. are being insured through Russian companies, said Amit Bilolikar, the deputy general manager of the company’s crude trading desk.

The refiner is buying Russian oil on a delivered basis and the process is going “smooth so far,” Bilolikar said. US crude now accounts for 20% of Bharat Petroleum’s purchases, he added.