Morgan Stanley Cancels Libyan Crude Trades (MS)

Morgan Stanley MS has canceled its Libyan oil trading contracts, which could be the start of further sanctions for the country.

The firm cited the cancellation as a result of it being "due to the OFAC," which is the U.S. Office of Foreign Assets Control. This office controls trade sanctions.

In addition to trading oil, the New York-based investment also traded gasoline with Libya.

"Players won't be able to buy Libyan crude even if it's there. It won't matter if they are producing or not," said a crude oil trader.