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Behind the Money

Best Of: How Dubai is reshaping the global oil trade

Behind the Money

Topher Forhecz

Markets, Investing, News, Banking, Finance, Business, Business News, Crypto

4.4350 Ratings

🗓️ 4 September 2024

⏱️ 19 minutes

🧾️ Download transcript

Summary

This week, we’re revisiting an episode from last year. For decades, the global centre for oil trading has been Geneva, Switzerland. But Russia’s war in Ukraine changed that. Sanctions have made it harder for western traders to move Russian oil. Now, traders are flocking to a new trading hub that has no restrictions on oil from Russia: the United Arab Emirates. The FT’s Tom Wilson explains how this shift has helped the UAE replace Switzerland, and whether the global energy industry is shifting away from western economies. 


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For further reading:

How Dubai became ‘the new Geneva’ for Russian oil trade

Switzerland questions oil trader over sidestep of Russian sanctions

Letter: Energy trading is opaque — and that suits Big Oil


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Register now for the FT Weekend Festival, and claim £24 off your pass using promo code FTPodcast at: ft.com/festival


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On X, follow Tom Wilson (@thomas_m_wilson) and Michela Tindera (@mtindera07), or follow Michela on LinkedIn for updates about the show and more. 


Read the transcript of this episode which was first aired in August 2023



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Transcript

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0:00.0

This podcast is brought to you by Vertex, the world's leading tax technology.

0:05.0

Doing business globally is challenging, managing tax complexity even more so,

0:10.0

and your technology systems weren't built to handle that complexity.

0:14.0

That's where Vertex comes in with a global platform that enables continuous compliance,

0:19.0

giving you more transparency, improved accuracy, and better confidence in your tax data.

0:25.8

To learn more about continuous compliance, visit vertexink.com. I'm at the Fijera oil terminal in the mountainous northeastern corner of the United Arab Emirates on the Gulf of Oman.

0:41.0

The sun's high in the sky and behind me to my left and to my right

0:49.1

I think to see rows and rows of

0:53.6

enormous oil storage facilities.

0:55.9

Earlier this year, the F.T's energy correspondent Tom Wilson

0:59.4

took a trip to Fujaira.

1:01.0

It's a port city in the United Arab Emirates. The city is roughly an hour's

1:05.8

drive east from Dubai and sits along a major shipping route in the Gulf of Oman.

1:11.0

The port symbol is a big blue F on a white circle and the entrance is a big sweeping

1:18.2

concrete blue wave. Cars queue up to get access.

1:25.0

Behind the barriers, you can see oil terminals,

1:28.0

a network of pipes, heavy goods vehicles

1:31.0

and other trucks moving back and forth.

1:35.0

Lately, business at the port has exploded.

1:38.0

Today has been a hive of activity this year. As commercial activity in the UAE booms, in particular flows of oil into the area of jumps.

1:52.0

Horsesistic suggests it's been a record year

1:55.0

for the number of oil vessels calling at the border for

...

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