UPDATE 1-Japan’s Mitsui to resume oil trading in Singapore

* Mitsui sets up oil trading subsidiary in Singapore

* Firm closed previous Sing unit in 2007 after trading losses

* New unit aims to start trading in FY2011

(Adds details)

By Florence Tan and Osamu Tsukimori

SINGAPORE/TOKYO, Oct 21 (BestGrowthStock) – Mitsui & Co Ltd (8031.T: )
is resuming oil trading operations in Singapore, the Japanese
firm said, returning to the city-state after its last business
there closed in the wake of trading losses.

Rival Japanese trading houses have increasingly been moving
their oil traders to Singapore, considered the Asian oil trading
hub.

Mitsui, Japan’s second-biggest trading house, shut its
previous Singapore arm, Mitsui Oil Asia (MOA), in 2007 after
suffering around $81 million in naphtha trading losses and has
since limited its trading to crude and low-sulphur waxy residue
(LSWR) from its Tokyo headquarters.

The new wholly owned subsidiary, dubbed Mitsui & Co Energy
Trading Singapore Pte Ltd, aims to start trading oil products and
crude oil in the financial year starting in April 2011, said
Tokyo-based Mitsui spokesman Kazuhisa Kawamura.

Earlier this year, Sumitomo Corp (8053.T: ) relocated its
Middle East crude trading operations to Singapore, industry
sources said.
(Additional reporting by James Topham; Editing by Joseph Radford)

UPDATE 1-Japan’s Mitsui to resume oil trading in Singapore