NEW YORK (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) has launched a formal effort to sell its controlling stake in U.S. oil terminal and transport business TransMontaigne, three sources said on Wednesday, following other Wall Street powerhouses in yielding to intense regulatory pressure to get out of commodity investments.
The bank has started circulating preliminary information about the assets it could sell, which include the general partner of master limited partnership (MLP) TransMontaigne Partners LP (TLP.N: Quote, Profile, Research, Stock Buzz), the sources said. One source said the offer also included a handful of assets outside the MLP.
NEW YORK/LONDON, Dec 6 (Reuters) – Just over three decades
ago, Goldman Sachs bought a niche coffee-and-gold trading
firm called J. Aron & Company, becoming one of the first banks
to enter the commodity markets.
A year from now, the Wall Street giant may be one of the
last ones standing as the former J. Aron traders who now run
Goldman mount a lonely defence of their right – and customers’
need – to buy and sell copper, crude or corn. Few others are
sticking around as a rocky, on-and-off romance between financial
firms and raw material markets turns sour again.
NEW YORK/LONDON (Reuters) – Wall Street’s commodity trading giants are using a 14-year-old law to hold on to their oil storage terminals and metals warehouses a little bit longer, even as the Federal Reserve considers cracking down on such investments.
Under the so-called “merchant” authority, U.S. financial holding companies are allowed to invest their own capital in just about any type of business – so long as they do so at arm’s length, for purely passive financial purposes, and for no more than 10 years. Banks have been allowed to take small equity stakes for decades, but a controversial 1999 banking law vastly expanded the scope of such investments.
NEW YORK (Reuters) – U.S. merchant Freepoint Commodities is still open to potential trading asset acquisitions after losing out on one deal this year, Chief Executive David Messer said, signaling he may yet take part in the industry reshuffle.
However, Messer told the Reuters Commodity Summit this week that he was unlikely to return to the metals warehousing business, beset by regulatory scrutiny and profit pressures, and will eschew the balance-sheet-heavy operations being shopped by banks in favor of more niche opportunities.
NEW YORK (Reuters) – The U.S. oil market is getting its first real taste of a remarkable phenomenon that may soon become a permanent reality: an excess of light sweet crude oil.
With a swath of refineries shut down for routine seasonal maintenance this month, the unyielding gusher of crude from U.S. shale wells and Canadian oil sands plants has temporarily overtaken demand from refiners, say analysts and traders.
NEW YORK (Reuters) – While the role of Goldman Sachs Group Inc (GS.N: Quote, Profile, Research, Stock Buzz) in global metals markets has fallen under a harsh regulatory spotlight this summer, the bank has also quietly enjoyed a privileged front-row seat to one of the most dynamic trading trends to emerge from the U.S. shale oil boom: shipping crude by rail.
Through a previously unreported minority investment in a small, privately held Texas-based firm called U.S. Development Group (USD) in 2007, Goldman Sachs has played a leading role in financing the expansion of nearly a dozen specialized terminals that can quickly load and unload massive, mile-long trains carrying crude oil and ethanol across the United States.
NEW YORK (Reuters) – After a major $500 million deal late last year, Texas-based oil-by-rail pioneer Dan Borgen might be forgiven for packing it in.
The sale of five crude oil terminals to Plains All American Pipeline was a landmark for U.S. Development Group, the Pasadena, Texas-company Borgen helped found two decades ago, initially to invest in the rail industry. It came just months before a dramatic collapse in the spread between U.S. inland crude and global benchmarks this year, a shift that has slowed the burgeoning trend of shipping oil by rail.
NEW YORK, Aug 20 (Reuters) – While the role of Goldman Sachs
Group Inc in global metals markets has fallen under a
harsh regulatory spotlight this summer, the bank has also
quietly enjoyed a privileged front-row seat to one of the most
dynamic trading trends to emerge from the U.S. shale oil boom:
shipping crude by rail.
Through a previously unreported minority investment in a
small, privately held Texas-based firm called U.S. Development
Group (USD) in 2007, Goldman Sachs has played a leading role in
financing the expansion of nearly a dozen specialized terminals
that can quickly load and unload massive, mile-long trains
carrying crude oil and ethanol across the United States.
(Reuters) – TransCanada Corp on Thursday said it would move ahead with a $12 billion oil pipeline to ship Western Canada’s oil sands crude to refiners on its east coast and beyond, scaling up the project as its U.S.-bound Keystone XL line stalls in Washington.
TransCanada, Canada’s No. 2 pipeline company, said it would push ahead with a 1.1-million-barrel-per-day Energy East Pipeline after “strong market support.” That is more than the 850,000 bpd capacity TransCanada mentioned in April, when it first began seeking customer commitments for the project.
NEW YORK, July 30 (Reuters) – Oil slipped on Tuesday and the
spread between WTI crude and Brent widened as traders bet that
the fund-fuelled rapid run-up in U.S. prices had gone too far,
while some held tight ahead of a Federal Reserve meeting.
The fall of oil futures on Tuesday follows a rally in both
benchmarks to multi-month highs above $109 in mid-July, which
attracted bullish speculators and large hedge funds into the
market. U.S. crude in particular had rallied to a 16-month high
as infrastructure developments allowed oil in landlocked
Cushing, Oklahoma, to flow to the U.S. coasts.