Singapore made itself into one of the world’s most important energy hubs despite producing no oil or gas. But after three months of war in the Middle East, the city-state, dubbed the “Houston of Asia”, is feeling the strain of trying to meet the region’s fuel needs.
“Sitting here, we see first-hand the impact of the energy shortages,” said an executive at a global commodities dealer, whose Singapore office has been fielding calls from clients across Asia, helping manage their exposures, fulfil contracts and supply physical cargoes. “It’s the most hectic time I’ve experienced in this business.”
An even bigger test looms as the global crisis enters its most dangerous phase, with fears that the oil price could further surge if the Strait of Hormuz is not fully opened for exports.