Citi Expands Energy Biz Team - Analyst Blog

In an effort to boost its energy business in Asia, Citigroup Inc. (C) is recruiting a minimum of five additional employees, including two traders, as per a Reuters report.

Citi has already hired Rob Biro as the head of its Asia oil products team. Rob Biro was a long-serving trader with the unit of Goldman Sachs Group Inc.’s (GS) J’Aron, in Singapore.

Citi is also seeking to expand the team of traders. In addition to its current team of two oil traders – a trading manager and a naphtha trader, Citi is also looking to employ a distillates trader and a fuel oil trader. Citi has already appointed Robert Bayley in Singapore in January this year as the new Asia-Pacific head for commodities. He replaces Ananth Doraswamy.

The initiatives to expand its energy and commodities business in Asia is a strategic fit with the actions taken by a number of other banks. This includes Credit Suisse Group (CS), Société Générale, Macquarie and Australia and New Zealand Banking Group Ltd.

Asia has become an attractive region for business growth. Countries such as China and India, which are experiencing an economic boom and deregulations compared to the slowing economies and stringent regulations in the West as well as the debt crisis in Europe, are compelling banks to strengthen their business in this region.

Following the global financial crisis, Citi has been expanding its energy business team in this region. It has already forayed into physical oil trading in the past one year. With a widespread network in the Asia region, the company is expected to reap the benefits of this expansion in the coming years.