Bloomberg News

Oil, Iron Ore May Be Most Affected by Cutbacks, Barclays Says

December 15, 2011

Dec. 15 (Bloomberg) -- Oil, iron ore and coal may be the most affected if banks cut lending, while the freeze in trade financing won’t be as severe as in 2008-09, according to Barclays Capital.

Following are comments from Barclays analyst Amrita Sen said at a press conference in London today.

“Commodities with the biggest share of seaborne trade, such as oil, iron ore and coal, will be the most affected by the financing freeze.

‘‘Even if there were to be a tightening, it shouldn’t be nearly as disastrous as what you saw in 2008-2009. The G-20 will probably be a lot more pro-active, because they did inject a lot of money into trade financing in the first quarter of 2009, so they should be more prepared this time around.’’

‘‘It’s just if you were looking for tail risks, that’s something to watch out for.”

--Editors: Sharon Lindores, Claudia Carpenter

To contact the reporter on this story: Maria Kolesnikova in London at

To contact the editor responsible for this story: Claudia Carpenter at

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