LONDON, May 24 (Reuters) - Commodities-related revenue at the 12 biggest investment banks fell 29 percent year-on-year in the first quarter of 2017 to its lowest in more than a decade, mainly due to weakness in the energy sector, a consultancy said on Wednesday.

Revenue from commodity trading, selling derivatives to investors and other activities in the sector fell to $800,000 million in the first three months of the year, financial industry analytics firm Coalition said in a report.

“The continued decline in revenues resulted in the lowest levels since 2006, predominantly due to poor performances in energy,” it said.

Coalition has been analysing bank data since 2006.

Banks’ commodity revenue has been on a steady downward path in recent years as they have exited or downsized their commodity business due to heightened government regulation and poor performance from the sector.

In the fourth quarter, commodity revenue jumped 20-25 percent, largely due to an improvement in U.S. power and gas activity. But it declined 7 percent for the whole of 2016 due to weakness in the oil sector.

Coalition tracks Bank of America Merrill Lynch, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs , HSBC, JPMorgan, Morgan Stanley, Societe Generale and UBS. (Reporting by Eric Onstad; Editing by Mark Potter)