Bank of America Corp. has told its traders not to enter into oil trades with BP PLC that go beyond June 2011, Reuters reports Tuesday, citing a market source familiar with the bank's order.
The directive to traders came from a high-level executive and was issued Monday, according to a source familiar with it. Traders were told not to engage in trades with BP for contracts beyond one year from this month.
The order didn't state a reason for the limit on longer-duration trades with the U.K.-based oil giant, which is under pressure to stop a leak from one of its oil wells in the Gulf of Mexico that could cost the company billions of dollars in liabilities.
A Bank of America spokesman declined to comment, Reuters says.
BP spokesman Toby Odone said the company doesn't comment on market rumors or speculation.
A source familiar with BP's trading operations said they haven't been curtailed since the leak began in late April. BP wasn't told of any new trading limits with Bank of America, the source said.