Goldman traders gain $1 billion in commodities revenue after oil slump - BloombergGoldman traders gain $1 billion in commodities revenue after oil slump - Bloomberg
FILE PHOTO: The Goldman Sachs company logo is seen in the company’s space on the floor of the NYSE in New York

(Reuters) – Goldman Sachs Group Inc commodities unit generated more than $1 billion in revenue this year through May as traders positioned their bets for the collapse in oil prices, Bloomberg reported on Wednesday.

Most of the boost came from oil trading overseen by Singapore-based partner Qin Xiao and Anthony Dewell in London, amid the collapse in oil prices, Bloomberg reported, citing people with knowledge of the matter.

Oil prices plunged to their lowest in years in a dramatic sell-off at the start of March, with U.S. crude futures at one point priced deep in negative territory as panicked traders bailed out of positions upon realizing that many would be forced to take physical delivery of oil without a place to put the barrels.

Numerous funds and brokerages suffered heavy losses in the selloff, sparked by the slump in car and air travel due to the coronavirus as well as an argument between Saudi Arabia and Russia over production volumes.

“We are market makers and a client franchise business, and now as always we do all we can to help our clients manage their risk,” Goldman spokesman Patrick Lenihan told Reuters.

(Reporting by Noor Zainab Hussain and additional reporting by C Nivedita and Abhishek Manikandan; Editing by Maju Samuel)