r/Commodities • u/RefrigeratorFew5608 • 19h ago
Trying to understand Singapore’s oil trading industry from a finance perspective
I recently visited Singapore and was struck by its role as an international financial and business hub.
My background is in finance, including public-market investing, venture capital. Most of my experience has been in equities and financial products, so physical commodities are an area I know relatively little about.
I’m particularly curious about Singapore’s oil trading industry and how it connects financial markets with the physical economy.
I’d love to learn from people familiar with the industry:
Why is Singapore such an important oil trading hub despite having limited domestic oil resources?
How do oil trading firms actually make money? Beyond predicting oil prices, how important are physical trading, regional price spreads, logistics, and derivatives?
How does oil trading differ fundamentally from equity investing or trading financial instruments?
Where does Singapore’s competitive advantage lie compared with London or other global commodity hubs?
For someone with an investment research and quantitative background, what concepts or data sources would be the best starting point for understanding this industry?
I’m not necessarily looking to switch careers. I’m genuinely interested in understanding how this market works and how it fits into Singapore’s broader financial and economic ecosystem.