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Barclays' energy trading exit raises concerns

The departure of yet another top-five player puts pressure on oil producers worried that falling liquidity means now they cannot use derivatives to hedge risk

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Barclays Plc joins RBS Sempra and Deutsche Bank in getting out of energy trading, a move which analysts say was expected, as Barclays had been scaling down its operations in recent years.

New York

BRITISH bank Barclays Plc has joined the list of top banks to exit energy trading, an exodus that analysts say raises concern among oil producers that falling liquidity means they cannot use derivatives for their basic function: to hedge risk by locking in future prices.

sentifi.com

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