Morgan Stanley says it plans to double revenue from commodities trading in the next three years as rising prices spur demand.
"The movement, the importance of commodities, is going to continue to expand and develop," Marc Mourre, the global head of commodities marketing, said in an interview in London Monday. "We are in a cycle that's going to continue to be bullish for commodities in general."
The company, which is based in New York, has about 320 people in commodities trading, sales, and marketing after adding 40 to 50 employees this year, he said.
Morgan Stanley and Goldman Sachs Group Inc. accounted for about half of the $12 billion that banks and brokerages generated from energy and commodities trading last year, according to Ethan Ravage, a financial services industry consultant in San Francisco. Mr. Mourre declined to comment on Morgan Stanley's revenue from commodities.
Morgan Stanley plans to expand into physical trading by adding assets such as refineries and storage facilities, Mr. Mourre added. Last year it bought TransMontaigne Inc., a fuel distribution company in Denver.
