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Apr 17, 2014

Amid frigid winter, Goldman, Morgan Stanley see commodity gains

LONDON/NEW YORK, April 17 (Reuters) – Goldman Sachs
and Morgan Stanley both cited stronger commodities
trading as a bright spot in the first quarter, aided in part by
extraordinary volatility caused by the coldest U.S. winter in
three decades.

The two longest-serving banks in the sector took on more
risk in the quarter, and may be benefiting from rivals scaling
back or quitting the raw materials trading business due to new
capital and trading regulations and slimming profit margins,
underscoring the benefits of sticking out a tough patch.

Apr 17, 2014

Goldman, Morgan report strong commodity results as rivals exit

LONDON, April 17 (Reuters) – Goldman Sachs and Morgan
Stanley both reported stronger net revenue in commodities
trading during the first quarter on Thursday, as the two
longest-serving banks in the sector took on more risk and
benefited from rivals scaling back.

Goldman said “significantly higher” net revenue in natural
resources trading compared with early 2013 had helped offset
lower returns across the rest of its Fixed Income and
Commodities (FICC) business, while Morgan Stanley said a “strong
performance” in commodities had helped boost FICC net revenue to
$1.7 billion from $1.5 billion.

Apr 17, 2014

Oil slips towards $109 after six-week high on Ukraine

LONDON (Reuters) – Brent crude oil slipped towards $109 a barrel on Thursday, after hitting a six-week high in the previous session, as traders assessed whether rising tensions in Ukraine could disrupt supplies from Russia.

With Russian troops massing on the border with Ukraine and three separatists killed overnight in eastern Ukraine, the prospects of defusing the crisis at talks in Geneva appeared slim.

Apr 17, 2014

Brent crude oil rises to nearly $110 on Ukraine tensions

LONDON, April 17 (Reuters) – Brent crude rose to nearly $110
a barrel on Thursday, trading just below a six-week high hit in
the previous session, with rising tensions in Ukraine
heightening concerns over Russian supplies, and robust U.S. and
Chinese demand supporting prices.

With Russian troops massing on the border with Ukraine and
three separatists killed overnight in eastern Ukraine, the
prospects of defusing the crisis at talks in Geneva appear slim.

Apr 16, 2014

Influence of banks, hedge funds on commodities lowest since 2008

LONDON (Reuters) – United Nations economists who previously called for government intervention to tame volatile swings in commodity prices say banks and hedge funds have since reduced their influence to the lowest level since 2008.

In a 2012 report for the UN Conference on Trade and Development (UNCTAD), David Bicchetti and Nicolas Maystre said the rise of financial players in commodities markets over the previous decade had moved prices of oil and grains away from the fundamentals of supply and demand.

Apr 16, 2014

Influence of banks, hedge funds on commodities lowest since 2008

LONDON, April 16 (Reuters) – United Nations economists who
previously called for government intervention to tame volatile
swings in commodity prices say banks and hedge funds have since
reduced their influence to the lowest level since 2008.

In a 2012 report for the UN Conference on Trade and
Development (UNCTAD), David Bicchetti and Nicolas Maystre said
the rise of financial players in commodities markets over the
previous decade had moved prices of oil and grains away from the
fundamentals of supply and demand.

Apr 8, 2014

Exclusive: Glencore appoints risk chief Jones as U.S. oil trading head

LONDON/NEW YORK (Reuters) – Glencore Xstrata’s (GLEN.L: Quote, Profile, Research, Stock Buzz) has appointed its risk chief Giles Jones as the new head of U.S. oil trading following the retirement of the previous incumbent last month, industry sources said on Tuesday.

British-born Jones will replace Andy Kelleher – a one-time president of oil major ConocoPhillip’s (COP.N: Quote, Profile, Research, Stock Buzz) trading business – who joined the commodities giant in 2012 from JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) and led Glencore’s push into the booming U.S. energy sector.

Apr 1, 2014

Brent slips towards $107 on China data, Libyan ports

LONDON, April 1 (Reuters) – Brent crude slipped towards $107
on Tuesday due to lacklustre manufacturing data from China and
the possibility of a jump in supplies from Libya after rebels
blocking eastern oil ports hinted at a deal with Tripoli.

Activity in China’s factory sector edged up in March,
according to government data, which economists said was not
enough to dispel concerns that the world’s second-largest
economy slowed more than expected in the first quarter.

Mar 27, 2014

Cargill exits coal trading, European power and gas

LONDON, March 27 (Reuters) – Cargill is exiting coal trading
and will stop dealing in gas and power in Europe, the global
commodities giant said on Thursday, becoming the latest company
to step away from the sectors that have been hit by falling
margins.

The privately-held firm, which employs 140,000 people in 65
countries, said its Energy, Transportation and Metals (ETM)
division would close the businesses following a review that
identified limited long-term opportunities in the sectors.

Mar 26, 2014

Brent oil rises above $107 on Nigerian supply cut

LONDON, March 26 (Reuters) – Brent crude oil rose above $107
per barrel on Wednesday as a disruption in supply from Nigeria
and Libya supported prices, while promising data from top
consumer the United States also boosted investor sentiment.

But an easing of worries over Ukraine – after the U.S.
president and his allies agreed to hold off on more damaging
economic sanctions against Russia, the world’s top oil producer
- kept a lid on crude price gains.