China becoming price maker for crude oil in Asian physical market

Singapore

CHINA'S growing ability to buy and sell millions of barrels of crude oil on the Asian physical market in a matter of minutes through its main trading firms has given China so much clout that other traders are often forced to follow its agreed prices.

Leading Chinese oil traders have cornered the market on several occasions since October last year. Early this month, Chinaoil, the trading arm of PetroChina, bought five million barrels of crude in just 30 minutes through Asia's main price-finding mechanism organised by Platts, part of McGraw Hill Financial Inc.