Most ex-BP fuel oil traders go to China Brightoil: sources

SINGAPORE (BestGrowthStock) – Most of the former BP fuel oil traders, who recently resigned from the major’s Asian and U.S. units, are expected to join Chinese trading firm Brightoil Petroleum, four industry sources said on Wednesday.

They include BP’s former global head of fuel oil, Quek Chin Thean, ex-Asia team leader Edmund Lau and ex-chief U.S. fuel oil trader Tim Gawne, the sources said. Some other members of the trading team and support staff who left the oil major are also set to join the Hong Kong-listed Brightoil.

Brightoil chairman Raymond Sit could not be reached for comment on the matter.

Reuters had reported that 14 traders and support staff of BP’s fuel oil trading operations worldwide quit in the past month.

Brightoil’s hiring of the bulk of the ex-BP traders is seen as a coup that would benefit its trading capabilities, particularly in physical fuel oil cargo trading, where it does not yet have a presence, traders said.

“Brightoil has got a substantial presence in the South China bunker market and are growing in other parts of the country. Right now, they are buying cargoes from Singapore to supply their China outlets,” an industry source said.

“With the entry of the BP guys, they would be able to source for their own cargoes, do the blending themselves to optimize value and trade larger positions, especially in the swaps market. After all, that’s what the BP guys have made a career of doing successfully in the past 10 years or more.”

However, traders said Brightoil would have to expand its trading infrastructure in Singapore, particularly its oil storage capacity, if it has ambitions to be a major player in the market.

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(Reporting by Yaw Yan Chong; Editing by Ramthan Hussain and Clarence Fernandez)

Most ex-BP fuel oil traders go to China Brightoil: sources