OPINION | Could AI break the grip of commodity giants on refined fuels?

The Iran conflict has put a spotlight on the somewhat murky world of refined fuel trading as the world battles constrained supply and record-high prices. But it is AI that may bring the trading of diesel, gasoline and other products out of the shadows for good.

While crude oil trading practices have been established for decades, attracting a wide range of market participants, the same cannot be said of refined products.

These markets, especially in the top-consuming region of Asia, have largely been the preserve of a relatively small group of traders who represent producers, refiners, shippers and large commodity houses such as Trafigura and Vitol.

But every now and again, the market can shift, and AI may provide the tools needed to democratise this still opaque segment of the commodities trading universe.

The idea sounds simple: use AI to collate all available data, add in the knowledge of specialised traders and analysts, and generate trading ideas tailored to specific users and situations.