September 18, 2017 / 12:11 PM / a month ago

Energy traded Vitol raises Kazakhstan's cash-for-oil deal to $5 billion

(Reuters) - Energy traded Vitol SA [VITOLV.UL] increased oil-backed loans to state-controlled companies in Kazakhstan to a maximum of $5 billion, making it one of the biggest traders of oil produced from the country, the Financial Times newspaper reported on Monday.

Commodity traders such as Vitol, Glencore and Trafigura [TRAFGF.UL] have been moving further into the business of providing cash-for-crude loans to oil producers such as Russia, Kazakhstan and Iraqi Kurdistan. (on.ft.com/2w2NXGR)

Lending money tied to physical oil exports also helps bank manage loans and has been a trend in energy trading since 2014 when oil prices fell from a peak of $115 per barrel.

Reporting by Sanjeeban Sarkar in Bengaluru; editing by Jason Neely

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