SINGAPORE (REUTERS) - Japanese trading house Sumitomo Corp 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 spokesman said on Thursday (Jan 14).
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 Organisation 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 Exits Singapore Bunker Business
by Ship & Bunker News Team
Thursday January 14, 2021 Japanese oil firm Singapore bunker fuel blending business and relocate its trading desks. The company s crude and fuel oil trading desks will be moved to Sumitomo s
Tokoyo base, according to a Reuters report. A source familiar with the matter was cited in the report as saying that the move should be completed by April. Sumitomo s Singapore unit
Summit Energy & Resources, previously known as
Petro Summit, will continue its oil trading business until the end of March, the Business Times reported. Market competitiveness and company strategy, among other factors, were given by the source as prompting the decision to move out of the southeast Asian shipping and bunkering hub.