BP To Reduce Oil Trading

BP BP, Europe's second-largest oil company, will reduce the size of its oil trading business as crude futures experience their least volatile run in recent memory, crimping trading profits. BP made $2 billion in trading profits in 2004, but with crude futures trading between $68-$87 a barrel this year, that hasn't been enough to juice profits. BP told employees last month its 3,500-strong trading business will cut management and reduce costs to cope with lower margins, and a restructuring will be announced on November 15, Bloomberg News reported. BP has reportedly lost 25% of its Asian trading staff this year. The company competes with directly with other oil companies, investment banks and hedge funds in the trading business. BP aims to refocus its trading business on faster- growing markets in China, India, West Africa and Brazil, Bloomberg reported, citing an internal BP memo.