JP Morgan To Begin Physical Oil Trading By Year-End 2008, Eyeing $200 Prices - Forbes

[hatrack]

SINGAPORE, May 14 (Reuters) - JPMorgan Chase (nyse: JPM - news - people ) & Co will begin trading physical oil by year-end, increasing its exposure in a market that could rise to $200 a barrel, the bank's global head of commodities said on Wednesday.

The bank plans to expand in commodities and energy trading, Blythe Masters said, despite expectations of job cuts in other areas as it prepares to take on staff from Bear Stearns (nyse: BSC - news - people ) at the same time it deals with turbulent financial markets. "We will start trading in physical oil and refined products by the end of this year," she told Reuters in an interview.

JPMorgan will join a growing list of investment banks from Goldman Sachs (nyse: GS - news - people ) to Barclays (nyse: BCS - news - people ) Capital seeking to boost profits on their big derivatives trading desks by gaining a foothold in physical markets.

The third-largest U.S. bank added 50 people to its commodities and energy trading and investment team last year and is on track to hire a similar number this year, taking the strength of the total team globally to 450, Masters said. Earlier this month, it hired former Goldman Sachs banker Oral Dawe as managing director and CEO of its Asia Pacific commodities group, in addition to hiring more than a dozen traders in Asia recently to oversee its expansion in energy and metals.

EDIT

http://www.forbes.com/reuters/feeds/reuters/2008/05/14/2008-05-14T133826Z_01_SP148501_RTRIDST_0_JPMORGAN-COMMODITIES-INTERVIEW.html

[johnlal]

1. It's time for price controls.

Let the oil companies bear a part of the suffering.

[no_hypocrisy]

2. Geez, more derivatives . . . .

[madrchsod]

3. time for the usa and the rest of the world

to put an end to unregulated speculation...but i`m not holding my breath that anyone will