Singapore, 15 February 2010
Macquarie Group's Energy Markets Division (EMD) today announced plans to start a physical oil trading business in Singapore having hired a six person team led by industry veteran Steven Taylor.
This new team brings a range of proven trading strategies based on low risk intermediation and client service within the global oil trading value chain. Its members also have substantial Asian physical oil experience spanning trading, structured origination, logistics and operations.
Mr. Taylor joins as Division Director and Head of Physical Oil in Asia. He joins from Masefield AG, an independent oil trading firm based in Zug. He was based in Singapore for the past 5 years, with a focus on Asia-based trading strategies. Prior to that Mr. Taylor spent 20 years with Shell Group companies in a variety of Asian and global roles within the refining, supply and trading functions.
"The team's experience and relationships provide a solid base from which to grow this complementary physical trading opportunity, alongside our well-established global paper oil trading. We see many opportunities to create value from the team's integration, through broader client relationships, the combination of finance and/or price risk management services with physical supply and offtake, and a deeper understanding of the traded oil and refined oil product markets from adding a Macquarie Group of Companies valuable physical perspective to our trading desk," said Nicholas O'Kane, Global Head of Energy Markets.
"We see a particular opportunity in physical oil trading from an Asian viewpoint, as the region consolidates its leading position based on the growth of substantial new refining capacity, feeding the region's high-growth economies, and taking a greater share of markets as far afield as Europe and the west coast of the Americas" added David Heard, Head of Oil & Gas Asia.
This expansion follows the successful development of EMD's physical natural gas and electricity trading businesses in North America and Europe, as well as the global reach of the physical coal trading operation based on a similar seaborne cargo opportunity. Experience gained from these markets has encouraged EMD to further extend its physical presence into oil as a means to differentiate and broaden the client offering, and support consistent trading profitability based on underlying physical movement of essential commodities.
The physical oil business expects to commence trading progressively in the coming months as regulatory and operational requirements are completed for key jurisdictions in Asia.
EMD is a global sales and trading business participating in the following core businesses: US physical and financial natural gas, coal, oil trading, power, and UK utilities. The division provides innovative and tailored solutions for energy market participants globally by delivering energy price risk management ideas, analysis and execution to clients across the spectrum of energy production, conversion and consumption. EMD has five sales desks globally who are committed to providing structured finance, risk management and selected physical commodity solutions to a broad customer base.
EMD is part of Macquarie Group's Fixed Income, Currencies and Commodities (FICC) business grouping. FICC is involved in a broad range of financial markets trading activities. Its services range from 24-hour trading in the Australian dollar and base metals to managing a clients entire treasury operation.