Bunker supplier brought down by poor cooking

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The bunker supply sector is still reeling from the bankruptcy of the world’s largest maritime fuel provider and Denmark’s third largest company last week. OW Bunker filed for bankruptcy in Aalborg, Denmark on Friday, after uncovering an alleged $125m fraud at the company’s Singapore-based subsidiary Dynamic Oil Trading.

Given that OW Bunker was already in hock to 13 banks for $750m its hopes of obtaining more credit following the revelations of fraud were obviously non-existent leaving the company little other option than to pull the rug.

The common assumption is that there is always money to be made from oil: that is until somebody is allowed into the kitchen to cook the books.