25 November 2004 08:07 [Source: ICIS news]
SINGAPORE (CNI)--Singapore-listed China Aviation Oil (CAO) will continue to trade physical aromatics cargoes despite announcing its plan to exit oil derivatives trading last week, a company spokesman told CNI on Thursday.
CAO, which used to trade in both physical and paper oil markets, is one of the main suppliers of jet fuel to China. However, CAO will only be in the paper market to cover its physical positions and not speculative trading.
John Casey, deputy head of internal audit and investor relations division at CAO, said that the aromatics trading volume was only a small part of its businesses in comparison with its oil products. CAO trades mainly jet fuel, gasoil and fuel oil.
"We are wrapping up our plan to exit the paper market by next week as planned," he said.
Meanwhile, CAO has dropped its plan to buy a 20.6% share in Singapore Petroleum Co (SPC) after failing to receive an approval from its parent company China Aviation Oil Holding Co (CAOHC) in China.
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