• 1 hour Nigeria Makes First Step Away From Oil
  • 13 hours Russia Approves Profit-Based Oil Tax For 2019
  • 17 hours French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 19 hours Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 21 hours Oil Production Cuts Taking A Toll On Russia’s Economy
  • 23 hours Aramco In Talks With Chinese Petrochemical Producers
  • 24 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 1 day Maduro Names Chavez’ Cousin As Citgo Boss
  • 1 day Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 2 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 2 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 3 days Whitefish Energy Suspends Work In Puerto Rico
  • 3 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 4 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 4 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 7 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 7 days Venezuela Officially In Default
  • 7 days Iran Prepares To Export LNG To Boost Trade Relations
  • 7 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 7 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 8 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount

Breaking News:

Nigeria Makes First Step Away From Oil

Alt Text

Wall St. Gears Up For The World’s Biggest Oil Trade

The Hacienda Hedge, the largest…

Alt Text

5 Big Gainers In Oil & Gas This Week

Energy stocks have been among…

Alt Text

Why Wall Street Is Bullish On Refiners

Wells Fargo has noted that…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Goldman’s Commodity Unit Sees Worst Q1 In A Decade

Goldman

The leading commodities trader among global investment banks, Goldman Sachs, is assessing the future direction of its commodities business, following the worst start to a year in more than a decade, Bloomberg reported on Monday, citing people with knowledge of an informal internal review.

The fate of the commodities business was one of the items on the agenda of a recent board meeting in London in late June, Bloomberg’s sources said on the condition of anonymity.

Goldman Sachs has not reached any decision regarding the unit, and may not be overhauling the commodities division. According to one of Bloomberg’s sources, it is a common practice for a bank to review the performance of divisions that are not doing very well.

In its Q1 2017 results release, Goldman Sachs said that “Net revenues in Fixed Income, Currency and Commodities Client Execution were $1.69 billion for the first quarter of 2017, essentially unchanged compared with the first quarter of 2016, reflecting significantly higher net revenues in mortgages and higher net revenues in interest rate products, offset by significantly lower net revenues in commodities and currencies and lower net revenues in credit products”.

Goldman did not quantify then the “significantly lower net revenues in commodities”, but according to one of the people who talked to Bloomberg, weakness in the commodities business persisted after the first quarter, and the commodities division’s start to the year has been the worst in more than a decade.

“Commodities has been and still is an important business for our clients and we will continue to invest in it to ensure we are best meeting their needs,” bank spokesman Michael DuVally told Bloomberg in an emailed statement.

According to U.S. Senate report “Wall Street Bank Involvement with Physical Commodities” from 2014, Goldman Sachs’s “commodity revenues were generally under $500 million from 1981 until 2000, and then began to climb, producing four years of relatively high revenues, from 2006 until 2009, before they once more began to decline.” The peak in 2009 was at US$3.4 billion, said the Senate report, quoting a Goldman presentation from 2013.

According to one of Bloomberg’s sources, Goldman’s commodities revenue for 2016 was less than US$1.1 billion.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News