Categories: Trading

Sumitomo to close crude, fuel oil trading desks in Singapore

The moves come after stricter emissions standards were imposed by the International Maritime Organization

Japanese trading house Sumitomo plans to close its crude and fuel oil trading desks in Singapore at the end of March and will relocate the trading functions to its Tokyo headquarters, a company spokesperson said on Thursday.

The company will also exit its bunker fuel blending business in the city state, the largest global bunkering port, he said, without giving further details.

The moves, reported by Reuters on Wednesday, come after stricter emissions standards imposed by the International Maritime Organization starting 2020 reduced opportunities to compete through blending to produce bunker fuels.

Market competitiveness and company strategy, among other factors, led to the decision to downsize its Singapore operation, a source with knowledge of the matter told Reuters.

Sumitomo’s Singapore unit Summit Energy & Resources, previously known as Petro Summit, will continue its oil trading business until the end of March, and the transition will be completed in April, said the source.

Employees were told of the decision on Monday.

Sumitomo has two crude and fuel oil traders and six bunkering traders, both Japanese and local. The Japanese employees will likely relocate back to Japan, two sources said.

Summit Energy trades Australian and Middle East crude, blends and trades very low sulphur fuel oil for bunker sales.

The company plans to end a tank storage lease at Singapore’s Oiltanking Seraya terminal of 180,000 cubic metres in capacity, according to a source, who was notified of the change.

Summit Energy will continue to trade iron ore. Sumitomo Singapore, a separate unit, will handle bunker fuel sales in Singapore together with Sumitomo Tokyo after the transition is completed in April.


This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Richard Stanley

Recent Posts

World stock markets hit record highs

Asian stocks touched new peaks, Wall Street reached new highs, and MSCI’s global index added 0.28% World stock markets racked… Read More

5 hours ago

London stocks to open marginally lower

The FTSE 100 finished 0.4% lower at 6,715.42 on Thursday, down 0.3% since the week began Stocks in London are… Read More

5 hours ago

Indonesia stock market flat

The Jakarta Composite Index ended slightly lower, dropping 0.25 percent at 6,413.89 The Indonesia stock market has alternated between positive… Read More

5 hours ago

Netflix share price soars to double-digit gains on 200 million subscribers milestone is passed

The Netflix share price has soared by almost 13.5% in early trading on Wall Street this morning after the television… Read More

1 day ago

Stock market surges as Biden becomes president

The S&P 500 added 13 per cent on Wednesday, the best increase seen for any president since 1952 The stock… Read More

1 day ago

China stock market bounces higher again

The index added 0.47 percent to close at 3,583.09, while the Shenzhen Composite Index climbed 1.43 percent to finish at… Read More

1 day ago

This website uses cookies.

Read More