Singapore Oil Hub Opportunities Amid US Tariff Uncertainty

WITH US tariffs shaking up global trade, Singapore could profit by leveraging its position as Asia’s oil trading hub, turning price fluctuations into opportunities and helping companies navigate the turbulence, while securing supply advantages and optimising strategies, say market experts.

“In this evolving landscape, arbitrage opportunities (the practice of taking advantage of a difference in prices in two or more markets) could expand as refiners and traders seek to capitalise on shifting price differentials,” Sam Chua, a principal for Asia-Pacific (Apac) consulting at Rystad Energy, told The Business Times.

He added: “As a regional trading hub, Singapore players could see opportunities to capitalise on these market volatilities to arbitrage, optimise trading strategies, and secure competitive supply advantages amid shifting crude price dynamics.”

US tariffs are expected to disrupt about 4.7 million barrels per day of crude exports from Canada and Mexico, forcing producers to seek alternative markets, though viable options may be limited, said Rystad Energy.

Given US refiners’ reliance on heavy crude from Canada and Mexico, their search for alternative supplies, including from the Middle East, could drive up premiums for Asian crude, intensifying competition for heavy grades across key refining centres, Chua explained.