NEW YORK (Reuters) – A report funded by Wall Street’s largest lobby group laid out the most public justification yet of banks’ role in physical commodity markets, a lucrative business now under threat from mounting political and regulatory pressure.
The report by IHS Global, commissioned by the Securities Industry and Financial Markets Association (SIFMA), said that banks play a small but vital role in the natural resources supply chain, and that the ability to trade in the underlying commodities – not just derivatives – was significant.
NEW YORK, Sept 11 (Reuters) – On a sunny summer morning last
month, a quiet Sacramento suburb was suddenly shaken by an
explosion at the Elk Grove refinery, a small industrial plant
that produces asphalt.
Local firefighters rushed to battle the blaze, which was
generating a “substantial” plume of black smoke and alarming
local residents living just a few hundred feet away. A number of
them called 911 to report the incident, said Consumnes Fire
Department Deputy Chief John Michelini.
NEW YORK, Aug 29 (Reuters) – Oil prices on both sides of the
Atlantic extended losses to around 2 percent in late trading
after the market settled on Thursday as uncertainty rose over
the timing of a possible U.S.-led strike on Syria.
In a day of volatile trading that followed the biggest
two-day rally in Brent crude since January 2012, traders booked
profits ahead of the U.S. holiday weekend as President Barack
Obama and his allies sought to convince cautious lawmakers and
the public of the need to strike Syria.
NEW YORK, Aug 26 (Reuters) – Brent crude oil prices hit a
five-month high above $111 a barrel on Monday as the United
States signalled it was edging toward a possible military
response to last week’s suspected chemical attack in Syria, but
prices settled slighty lower in choppy trade as weak U.S.
economic data weighed.
In the most forceful U.S. reaction yet since Wednesday’s
suspected chemical attack, Secretary of State John Kerry accused
the Syrian government of an attempted cover up and said
President Barack Obama “believes there must be accountability
for those who would use the world’s most heinous weapons against
the world’s most vulnerable people.”
The planned 2,700 mile pipeline, which will bring crude from Canada’s energy capital of Alberta to refineries and ports on the East Coast, has the potential to upturn the dynamics of the North Atlantic oil trade squeezing out some imported crude to North America and revitalizing once-ailing refineries.
Aug 5 (Reuters) – TransCanada Corp’s plan to build
one of the world’s longest oil pipelines has reverberations far
beyond Canadian shores.
The planned 2,700 mile (4,400 kilometers) pipeline, which
will bring crude from Canada’s energy capital of Alberta to
refineries and ports on the East Coast, has the potential to
upturn the dynamics of the North Atlantic oil trade squeezing
out some imported crude to North America and revitalizing
NEW YORK, Aug 2 (Reuters) – Gavilon, which earlier this year
sold its grain-trading business, has retained Barclays
to help it find a buyer for its remaining energy business in a
deal that could fetch around $1 billion, according to two people
familiar with the matter.
Gavilon sold its grain-trading business to Japanese trading
house Marubeni Corp for $2.6 billion, after Marubeni
backed out of its original $3.6 billion deal to buy the entire
NEW YORK/LONDON (Reuters) – Goldman Sachs’ (GS.N: Quote, Profile, Research, Stock Buzz) effort to diffuse intensifying pressure over its commodity business by throwing open its metal warehouse doors likely comes too late to head off further scrutiny of Wall Street’s commodity trade.
Two weeks of escalating criticism of banks that own commodity assets and trade raw materials has shaken executives and the industry, with little sign of the pressure relenting. Britain’s financial watchdog is considering its own investigation of metals warehouses, sources said, and two lawmakers questioned whether power regulators were tough enough.
NEW YORK, July 31 (Reuters) – Goldman Sachs responded
to mounting political pressure and regulatory scrutiny of its
Metro International metals business, by offering customers
immediate access to aluminum stored in its warehouses on
In a statement outlining the bank’s proposal to cut waiting
times at all London Metal Exchange warehouses, Goldman Sachs
said it would make aluminum immediately available to major
NEW YORK (Reuters) – As JPMorgan Chase prepares to exit physical commodities trading, the spotlight is turning to the future of the two banks that have dominated Wall Street’s involvement in the natural resources supply chain for 30 years.
Goldman Sachs (GS.N: Quote, Profile, Research) and Morgan Stanley (MS.N: Quote, Profile, Research) two decades ago became known as the ‘Wall Street Refiners’ for their mastery of both financial and physical commodities.