Barclays plans it big in commodity business

Barclays Capital is planning it big in commodities business by increasing its staf strength to 325 from the present 250.

In the next two years, the staff would be deployed across Asia, the United States, Europe and the Middle East, according to Barclays senior staff.

At present the staff is deployed in energy and other commodities, which span oil and refined products, metals, power and gas, coal, agriculturals, emissions and investment products.

Growth in the United States is a priority, as well as in Asia, where Barclays has a 5-year joint-venture agreement with China Development Bank CHDB.UL, that will include products such as emissions, crude oil and refined products and metals.

Barclays aims for 20 percent of revenues to come from Asia in 5 years and 30 percent in 10 years.

Staff strength in Beijing will go from two to four. The commodities business generated revenues of about $1.8 billion in 2007.

Barclays Capital, the investment banking arm of the Barclays Plc, has also moved into physical trading in crude oil and refined products in the past two years.

Corporates make up the largest customer base for the firm's commodities business and the credit crunch has not made much impact on commodities trading.