Gettyimages / sarote pruksachat
- A rogue employee at a unit of Mitsubishi Corporation used unauthorized trades to target oil markets.
- Petro-Diamond Singapore, a Mitsubishi Corporation entity, "expects to post a loss of approximately $ 320 million from its crude oil derivatives trade."
- The company discovered the dealings in August and this week fired the employees and notified the police in a complaint.
- Watch the oil trade live.
A rogue employee at a unit of Mitsubishi Corporation used unauthorized trades to bet on oil markets, disguised them to look like "hedge transactions" with customers, and then lost millions as the market went south.
Employees at Petro-Diamond Singapore, a Mitsubishi Corporation unit, had been building positions since January, Mitsubish said on Friday, confirming "that it expects to post a loss of approximately $ 320 million from its crude oil derivatives trade."
The falling crude oil price since July translated into "big losses", it says. The company discovered the deal in August and dismissed the employee and filed policy statements this week.
Read more: Oil increased record 20% by the sudden attack on Saudi oil supplies
Oil has been in the headlines lately ̵
The sudden movement of Brent crude oil caught traders by surprise. The price of Brent crude has gone up since Saudi officials tried to ease supply problems, and Brent is currently hovering around 7% higher for the week.