Oil loses luster as banks cash in on cleaner commodities

LONDON (Reuters) – Investment banks are beefing up trading teams in markets such as gas, metals and carbon permits that are flourishing as businesses and economies become greener, according to recruitment consultants. The shift in staffing at the world’s biggest investment banks comes at the expense of oil, which has fallen out of favor after being the most profitable and best-staffed commodities business for years. Natural gas, which is considered a cleaner energy source than oil, and metals, which are essential components of batteries and for electrifying transportation systems, are now seen as a better bet, some headhunters said. “As we move toward a decarbonized economy these businesses realize they need to be involved in electricity,” said Jonathan Funnell at recruiters Proco Commodities. “Oil (revenues) being so bad has brought this to the forefront.” The world’s 12 biggest investment banks earned a combined $2.5 billion from power, natural gas and metals last year, according to previously unpublished data provided to Reuters by consultancy Coalition www.coalition.com. That’s more than five times the $450 million they made from oil. Four headhunters specializing in commodities positions said hiring in the oil sector fell 20%-25% over the last 18 months or so. Hiring of power… continue reading

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Source: CTRM Center

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