Statements Attributed to Neill Robertson-Jones, Head of Energy and Marine at National Bank of Fujairah

Commenting on the side-lines of the Gulf Intelligence Energy Markets Forum 2019, Neill Robertson-Jones, Head of Energy and Marine at National Bank of Fujairah, said: “National Oil Companies (NOCs) in the GCC are increasingly pushing to building and expanding their trading operations – this is triggered by Asia’s rising oil demand. Gulf NOCs are aligning their business models to those of international oil companies (IOCs) and transforming from national champions into competitors on the international stage.

Aramco has ambitions to become the third oil trader globally in a bid to support its downstream reach into Asia. Earlier in July 2019, ADNOC announced similar plans to bolster trading operations as part of a general company overhaul in line with the UAE’s plans to boost output to 4 million bpd by 2020. Similarly, other counterparts across the Middle East are now playing a greater role in determining the value of crude and refined products that they produce.

In light of the current reality, the ‘new normal’ of lower oil prices, political momentum behind the Paris Agreement, the growth of US Shale and electric vehicles are just some of the triggers forcing Gulf NOCs to rapidly embrace change. Based on our reading of the market, we see that a more globalised oil products market will emerge with more competition brought forward by NOCs.

Looking ahead at 2020 and beyond, we can see that this will have its unique set of challenges but will also present opportunities for UAE-based clients in the sector. The UAE is emerging as a global hub for specialised industries within the energy sector, and more specifically, Fujairah’s strategic position enables it to rapidly become a gateway to global energy markets. With a team of experts, NBF boasts an Energy unit which develops unique, tailored funding solutions for our clients in the energy sector across the supply chain. Most importantly, we are committed to helping them succeed and navigating the evolving market landscape.