SINGAPORE, July 12 (Reuters) – Citigroup's Asia energy-trading team is expanding by hiring at least another five staff, including two traders, and has also ventured into physical oil trading in the past 12 months, industry sources said on Friday.

Its plans in the region's growing energy and commodities markets are consistent with moves by banks such as Credit Suisse, Societe Generale, Macquarie and Australia and New Zealand Banking Group Ltd.

When contacted, a Citigroup spokesman declined comment.

Citigroup Inc has already hired a leader for its Asia oil products team, Rob Biro, a long-serving trader with Goldman Sachs' unit, J'Aron, in Singapore for about 10 years.

It is also looking to hire a distillates trader and a fuel oil trader, in addition to its current team of two oil traders – a trading manager and a naphtha trader.

''They are expanding their Asia business, very much like some of the other banks, who are non-traditional players in the commodities and energy sphere,'' a trader with a Singapore-based bank said.

''Most of the banks are looking to Asia to provide growth -- with the booming economies of China and India, as well as the potential deregulation in countries here, versus increasingly tough regulations in the West and the eurozone crisis.''

Citigroup is looking for a fuel oil trader to replace one who has left while the distillates headcount is new, as well as some trading analysts and marketers.

Citigroup also has a new Asia Pacific head for commodities, Robert Bayley, who took up his appointment in January in Singapore, replacing Ananth Doraswamy, who has moved to another asset class within the bank outside the city-state.

Industry sources said J'Aron, which is looking to replace Biro, has also appointed a new head for its Asia commodities trading team – Karl Robijns, an internal candidate, has replaced the long-serving Alan Marsden, who is retiring after more than 10 years with its Singapore office.