Oil trading troubles could jack up borrowing costs
Oil collapse flushing out suspect deals, casting doubts on reliability of corporate guarantees, putting more stress on smaller players
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Singapore
THE collapse in oil prices and the Covid-19 outbreak are exposing questionable practices in the Singapore oil trading industry that could exact a heavy toll on borrowing costs as banks get burnt.
The most high-profile case so far is oil trading giant Hin Leong, which was found to have hidden about US$800 million in losses. Another oil trader ZenRock Commodities has been accused by its creditors for transactions that have been alleged as "dishonest".
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