Cheaper oil encourages top traders to drive up volumes

April 22, 2015 1:43 PM

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LONDON, April 22 (Reuters) - Some of the world's biggest oil trading houses say they expect increased volumes this year as a fall in oil prices ties up much less capital for trading than a year ago.

Trading oil is expensive and requires big players to have billions of dollars of credit lines with dozens of banks, but a steep drop in oil prices means the value of a mid-sized cargo of crude oil has fallen from $115 million to $60 million and has therefore become cheaper to finance.

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