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BT EXCLUSIVE

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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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.

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Sanjeev Gupta, Asia Pacific oil-and-gas leader at EY, says the "massive size, scale and complexity" of the industry make it difficult for lenders to spot or track irregular activities.

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...

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