Mitsubishi to shut Singapore oil-trading unit after unauthorised losses

TOKYO/SINGAPORE (Reuters) – Mitsubishi Corp (8058.T), Japan’s biggest trading group, said on Wednesday it would shut its Singapore-based crude oil and fuel trading unit after revelations in September that a trader there racked up enormous unauthorised trading losses. The unit, Petro-Diamond Singapore, will lose about 34.2 billion yen ($314 million) before taxes after closing the unofficial trading positions. That means the final debt for the unit could be as high as 30.8 billion yen, the company said in a statement. Mitsubishi, Japan’s biggest trading house by sales, said in September that a trader lost $320 million in unauthorised transactions in crude oil derivatives and that the matter had been reported to the police. The trader, Wang Xingchen, also known as Jack Wang, denied any wrongdoing in a statement issued through a lawyer. These were the first such losses at Mitsubishi, which invests in everything from salmon to natural gas and trades many commodities globally. Mitsubishi will bring some oil and fuel trading back to Tokyo, Chief Financial Officer Kazuyuki Masu said during the company’s first-half results briefing on Wednesday. “Since it booked such a big loss, we could not reinvest in the same company and it’s better to reinforce our… continue reading

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