China Aviation Oil to expand trading activities

China Aviation Oil, Asia’s biggest buyer of spot jet fuel, said it will branch into trading fuel oil this year. According to CEO Meng Fanqiu, China is a big market for fuel oil, and there are less restrictions trading fuel oil in China, compared with gasoline or diesel fuel where licenses are required. The company is trying to leverage the trading experience of its parent company China National Aviation Fuel Group and BP in fuel oil. BP, which has a 20% stake in the Singapore-listed company, is an active trader in the Singapore fuel oil market. Apart from fuel oil, the company will also continue to grow its petrochemical business, as part of its strategies to expand into trading of other oil products. (February 25, 2010)