ΕιδήσειςΕυρωπαϊκές Ειδήσεις Glencore Xstrata Opens LNG Trading Desk dj Τρι, 10 Σεπτεμβρίου 2013 - 17:47
Commodities titan Glencore Xstrata PLC (GLEN.LN) set up a new liquefied natural gas team last week to take advantage of opportunities in the burgeoning physical LNG market, a person familar with the matter said. Glencore Xstrata hired four former Morgan Stanley (MS) traders who opened Glencore's new LNG trading desk last week, the person said. The team is based in London and Singapore , he added. Glencore Xstrata has expanded into LNG trading to take advantage of opportunities for arbitrage in the LNG physical market geographically and by blending products in order to achieve higher premiums for its products, the head of Glencore Xstrata's oil operations, Alex Beard, said last month. "LNG, I think fits more naturally, more properly within a physical trading house than it does within a bank and that's why we feel that the LNG market has now got to a scale and the size that is interesting for us to trade physically, " said Mr. Beard. "That's why we have an LNG team starting in September, looking for those physical LNG trading opportunities," he added. Mr. Beard said LNG is of particular interest to Glencore Xstrata because it trades more like oil than natural gas. In other words, LNG can be put on a ship and traded globally, thereby increasing the potential for arbitrage opportunities. Meanwhile natural gas tansported by pipe has limited arbitrage opportunities because it can only reach specific destinations and in fixed quality grades. Piped natural gas is better suited for financial derivatives trading, a service traditionally provided by banks, Mr. Beard said. On the oil side, Mr. Beard said that the pull back of large banks such as JPMorgan from the commodity markets, particularly in oil, is creating a opportunity for Glencore Xstrata and other physical traders to fill the gap. After spending billions of dollars in a decades-long expansion into all corners of the raw-materials business, Goldman Sachs Group Inc, JPMorgan Chase & Co and Morgan Stanley are trying to sell their physical commodities operations due in part to stricter banking rules regarding capital requirements and increased regulatory scrutiny over bank ownership of physical assets such as oil pipelines and metal warehouses. "JPMorgan certainly was bigger in the last three or four years than before. So... there may be more opportunities for trading companies," he said, indicating that trading companies could potentially provide financing in return for off-take agreements, a service that banks have been in the habit of providing. Διαβάστε ακόμα Nexans: Τελεσίγραφο στον ΑΔΜΗΕ για τον Great Sea Interconnector Τετ, 28 Αυγούστου 2024 - 16:00 Βρετανία: Εταίρος και Όχι Μέλος της ΕΕ - Ο Στάρμερ Βάζει Τέλος στα Σενάρια Επιστροφής Τετ, 28 Αυγούστου 2024 - 15:40 Οι Ευρωπαίοι Στρέφονται στα Μεταχειρισμένα Ηλεκτρικά Οχήματα Τετ, 28 Αυγούστου 2024 - 15:20 Lightsource BP: Ολοκλήρωσε και Πούλησε Ηλιακό Έργο στο Ηνωμένο Βασίλειο Τετ, 28 Αυγούστου 2024 - 13:00 Υπό Ρωσική Aπειλή η Eνεργειακή Bιομηχανία της Νορβηγίας Σύμφωνα με 7 Υπηρεσίες Ασφαλείας Τετ, 28 Αυγούστου 2024 - 08:57
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