China Aviation Oil suspends petrochemical trading

OREANDA-NEWS. State-controlled China Aviation Oil (CAO) has temporarily suspended its petrochemical trading activities because of a tough market.

"In view of the difficult market conditions, we have decided to temporarily suspend petrochemical trading activities until the market improves," CAO said.

The head of the firm's petrochemicals desk, Lim Fang Wei, left the company on 7 September together with another employee.

"The company's overarching strategy on diversification remains unchanged, [but] this is a proactive approach by the company in view of the current challenging market condition," CAO said.

CAO has been actively trading toluene, paraxylene and benzene. The company is the main jet fuel importer to China and the largest physical trader of the aviation fuel in Asia-Pacific. It has been expanding its presence in other oil products in recent years.