01NOV2019 - NEWS - Mitsui CEO:Higher demand for heavy crude boosts its profit

Higher demand in low-sulphur heavy crude ahead of new rules on shipping fuel is helping to boost the profit of Mitsui & Co as the Greater Enfield project in Australia began production in August as scheduled, the Japanese trading house’s CEO said on Thursday.

“The timely start of production of fine-quality low-sulphur heavy crude at the upstream project had also a ripple effect to our energy trading unit in Singapore,” Mitsui Chief Executive Officer Tatsuo Yasunaga told an analyst meeting.

A Mitsui executive said in March that the company will produce more heavy crude oil this year once projects in Australia and Italy are completed, in part boosting its ability to provide low sulphur marine fuel. The International Maritime Organization will prohibit ships from using fuels with a sulphur content above 0.5 percent from Jan. 1, 2020, compared with 3.5 percent today.