Morgan Stanley renews U.S. oil storage deal ahead of trading unit sale
Reuters
Published May 06, 2015 10:33PM ET
Morgan Stanley renews U.S. oil storage deal ahead of trading unit sale
By Jarrett Renshaw
NEW YORK (Reuters) - Morgan Stanley (NYSE:MS)'s commodities group has renewed a refined product storage deal with TransMontaigne Partners L.P. seven months early, as the Wall Street bank plans to sell its physical oil business.
In a statement on Wednesday, TransMontaigne said Morgan Stanley Capital Group extended its lease agreements for about 2.7 million barrels of refined product storage in Mississippi.
The move came about seven months before the contract was about to expire. The new agreement for the terminals located in Collins/Purvis, Mississippi will be effective Jan. 1, 2016, TransMontaingne said.
Morgan Stanley declined to comment.
The news comes as the bank continues to seek a buyer for its physical oil business after a deal to sell it to Russian oil company Rosneft fell apart last year.
Last week, it reshuffled the leadership of the physical oil trading business, naming Thomas Simpson and Fabrizio Zichichi as co-heads and replacing Michael Brennan.
Morgan Stanley will still act as a middleman for clients who want to trade physical commodities, but the bank no longer wants to own, operate or store products itself.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.