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Investors' reactions after Trump announces ceasefire between Iran & Israel
Donald Trump, the U.S. president, said that on Monday a "completely and totally" ceasefire will be implemented between Israel and Iran in order to end the conflict between these two nations. Trump wrote about his Truth Social website that "I would like to congratulate Israel and Iran on their stamina, courage, and intelligence to put an end to what we should call, 'THE 12-DAY WAR.'" After Trump's announcement that came after Wall Street closed trading, U.S. crude oil futures fell. S&P 500 futures rose slightly after trading resumed. Comments JACK ABLIN, CHIEF INVESTMENT OFFICER, CRESSET WEALTH ADVISORS, PALM BEACH, FLORIDA This removes some of geopolitical uncertainties surrounding the markets. However, most equity investors have shrugged off the uncertainty. "I think it is certainly an incrementally positive, but I do not think that it will be a catalyst for a new bull market." It certainly sounds like an important milestone and I hope that it is true." JAKE DOLLARHIDE is the CEO of LONGBOW ASSET MANAGER, TULSA. The higher oil prices, as well as the geopolitical risks have been a major factor in the decline of the stock market. A ceasefire or an end to the conflict could help solve both issues. This may be the match to spark a continuation of today's rally." (Compiled by Global Finance & Markets Breaking News)
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Ukrainian forces attack an oil depot in Russia’s Rostov Region
The Ukrainian military reported that Ukrainian forces attacked and destroyed an oil depot located in the southern Rostov region of Russia, which was used to supply Russian troops in parts of Ukraine occupied by Russia. The General Staff of Ukraine’s Armed Forces announced that the military’s special operations units in conjunction with rocket and artillery forces had struck the Atlas plant in Rostov Region, not far away from Ukraine’s eastern border. In a Telegram statement, the General Staff confirmed that "our forces have struck in the area where the target is located." "A fire was observed." "The results of the attack are being clarified." The facility is used to supply fuel and lubricants for Russian units in the Russian-occupied Luhansk region and Donetsk region on the eastern front of the war. Ukrainian forces have engaged in cross border attacks including energy targets. The General Staff stated that the aim was to curb Russia's ability to continue the war in Ukraine, which has been going on for more than three years. Ukrainian military bloggers reported earlier on the raid at the oil depot. They said that fuel tanks were engulfed by a fire. (Reporting and Editing by Rosalba o'Brien, Ron Popeski)
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Barrick Mining employees meet with Malian court appointed administrator in capital at the reopening of office
Two people familiar with the matter said that Malian tax officials reopened Barrick Mining’s office in the capital, under the supervision of a court appointed administrator. The office had been closed in April due to alleged nonpayment of taxes. This is the first major development since the Malian court, on 16 June, placed the Canadian miner’s Loulo-Gounkoto complex under state control. It was a major escalation in the long-running dispute over taxes. Barrick said that it would appeal the decision. It appointed former Malian Health Minister, Soumana Maadji as its provisional administrator. Makadji, who is expected soon to resume operations at the complex, held a staff meeting at the Bamako Office on Monday afternoon. According to one of the attendees, he said that he would be visiting the mine site on Wednesday. The mines will be able finance themselves once production resumes and gold sales resume. Three people with knowledge of the situation said that he also met with subcontractors Monday. Barrick's and Mali's Mines Ministry spokespeople did not immediately reply to requests for comments. Barrick and government have been negotiating since 2023 about the implementation of the new mining code, which raises taxes and grants the government a larger share in gold mines. The Loulo-Gounkoto mine complex has been closed since mid-January, after the Malian military government seized Barrick's stocks and blocked its gold exports. Barrick's Bamako main office has been closed for several months. (Reporting and editing by Joe Bavier, Tomaszjanowski and Tomasz Crowe)
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Chios, a Greek island, declares an emergency after wildfires continue to rage.
Greece declared a state-of-emergency on Chios Island on Monday. Hundreds of firefighters are battling the wildfires on the island for the second day, as the winds continue to rage, causing more power outages and evacuations of residents. The climate conditions on Chios are not conducive, and we have constant new fronts. He confirmed that an additional 170 firefighters would be added to 11 teams of approximately 190 firefighters who had been deployed on the island, located in the northeastern Aegean, to try to stop the fire from spreading into homes and areas where mastiha is produced, a natural resin made from mastic tree sap. Kefalogiannis stated that thirty more vehicles would be added to the 38 already deployed vehicles, with 13 helicopters, four water bomber aircraft and other support. The wind gusts made it difficult to put out the wildfires that have destroyed forest and pastures as they rage towards the north west and south of Chios Town, the capital of the island, forcing power cuts and forcing hundreds to flee. Kefalogiannis stated that the authorities would investigate the causes of fires which broke in different geographic parts of the island. Greece, located at the southernmost tip of Europe, has suffered from frequent wildfires that have affected its economy and environment in recent years. Scientists say this is due to a rapidly changing climate. The government has spent hundreds millions of Euros to compensate farmers and households for damages caused by extreme weather conditions and to upgrade firefighting equipment. In anticipation of a difficult fire season, the government has hired 18,000 firefighters, a record.
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GRAINS and soybeans slump due to 'greenhouse weather' in US
Chicago soybean futures eased Monday as favorable weather conditions in the U.S. took the attention away from the U.S. strike on Iran that occurred over the weekend. By 11:40 CST ( 1640 GMT), November soybeans had fallen 13-1/2 cents to $10.47 per bushel. Chicago corn fell due to weather pressure and wheat also declined with an accelerating harvest. Midwest Market Solutions president Brian Hoops said that the forecast for the week ending July 2 shows a warm and wet weather across the U.S. Corn Belt. Hoops said that the weather would create a "near greenhouse effect" with benefits for corn, soybeans and other crops. These favorable conditions have outweighed the impact of the initial surge in oil prices after the U.S. attacked Iranian nuclear sites on the weekend. After reaching a five month high, oil prices dropped 1% on Sunday as traders assessed the impact of the U.S. Airstrikes on the transit of gas and oil through the Strait of Hormuz. Because it is used as a biofuel to replace fossil fuel, the price of soyoil is closely linked to crude oil. Karl Setzer, a partner at Consus Ag Consulting said that "the lack a story about the weather on the U.S. crops is more negative than any potential explosion between the U.S. After hitting contract lows earlier, September corn fell 7-1/4 cents per bushel to $4.18-1/4. September wheat was 13-cents lower at $5.70-12 a bushel. Analysts predict that the weather in the United States will be favorable for harvesting wheat in the next few weeks. Hoops said that "Hotter, drier conditions are forecast for winter wheat Plains. This should advance the harvest of winter wheat, while good rains are forecast for spring wheat belt." Terry Reilly is a senior agricultural strategist with Marex. Renee Hickick in Chicago; Additional reporting by Ella Cao, Lewis Jackson and Sybille De La Hamaide in Beijing and Paris; Editing and production by Jan Harvey
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ERG will produce the critical mineral gallium next year in Kazakhstan
Eurasian Resources Group announced in a press release that it plans to invest $20 millions in Kazakhstan to produce the critical mineral gallium from the bauxite ores they process to make alumina. Gallium is listed as a critical mineral by the United States and European Union. It is required for the production of semiconductors and radar systems in aerospace and defense. Kazakhstan would become the second-largest gallium producer in the world, after China, if ERG's plan is implemented. ERG CEO Shukhrat Ibragimov stated that "ERG intends to become a major player on the global gallium market, beginning production in 2026, to supply OECD nations, with a goal to expand annual volumes to up to 15 metric tonnes per year." According to the U.S. Geological Survey, global gallium production reached 760 tons in 2013. The majority of the gallium was produced in China, with very small quantities coming from Japan and Korea. In response to Washington's crackdown on China’s chip industry, China banned the import of gallium (gallium), germanium (germanium) and antimony from the United States in December last year. The ban is only applicable to the United States. However, China has been steadily introducing export licensing regimes to these three metals in the 18 months prior to suspension. Aluminium is smelted using alumina. (Reporting and editing by Barbara Lewis; Pratima Deai)
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Brazil's Prio targets doubling of oil production in 2026 and cheers higher prices
Roberto Monteiro, the CEO of Brazilian oil company Prio, said that the company expects its daily production to double next year compared to 2024, due in part, he said, to some offshore fields being developed. Monteiro, Prio's CEO, said that the company expects to produce more than 200,000 barrels a day (bpd), up from 100,000 bpd last year. Prio, an independent oil producer, has grown in recent years by acquiring high-profile assets, such as the Wahoo and Peregrino fields from Equinor, Sinochem, and TotalEnergies. Monteiro explained that the production target reflects development of these assets. The company is currently waiting for approval from Brazil's environment agency Ibama before it can connect wells at Wahoo and start producing. This outlook is a result of increased geopolitical tensions, particularly in the Middle East. These tensions have driven global oil prices up in recent weeks as a result of concerns about potential supply disruptions. The global benchmark Brent price fluctuated on Monday. It reached a five-month peak before dropping more than 1%. Oil and gas were still being transported by tankers to the Middle East following the U.S. air strike against Iran at the weekend. Monteiro, in response to recent increases in oil prices, told reporters: "It is horrible to say a war was a good thing. But that's the reality." "Brazil is generally a stable geopolitical country, and it's a major oil producer." The CEO stressed that while Prio monitors geopolitical events around the world, its strategic decision-making will remain based on operational effectiveness and productivity. He said that the portfolio was created with efficiency in view. Prio shares traded in Sao Paulo rose around 1% Monday, beating the Bovespa index which fell 0.6%. (Reporting and writing by Marta Nogueira, Editing by Margueritachoy)
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Russia and Mali Sign Trade Deals, Eye Nuclear Energy Cooperation
On Monday, Russia signed agreements with Mali to strengthen trade and economic relations. President Vladimir Putin also told the leader of Mali's military junta who was visiting that specific areas could be improved. Russian state media reported that Putin met with Colonel Assimi Gouta at the Kremlin. The two men spoke for about two hours. Putin stated that the relations between Mali and Russia had "a good upward trend", even though bilateral trade is currently "modest", a Kremlin press release said. Putin stated that there are many areas of future cooperation, including geological exploration, the development of natural resources, energy, logistics, and humanitarian aid. The Kremlin reported that one of the agreements Putin and Goita made was about nuclear energy. Mali and Russia discussed in the past what they called a "strategic project" to build a low-power nuclear plant designed by Russia. The construction of a new gold refinery in Mali, backed by Russia, began in the first week of this month. Goita, who came to power in 2020 after coups in 2021 and 2020, said that it would give Mali greater control over its resources. Mali, one of Africa's leading gold producers lacks a globally certified and functional refinery. Russian mercenary units have also provided Goita with fighters, after the Malian military expelled French and U.N. forces that had been fighting Islamist insurgents in Mali for the past decade. The African Corps is still operating in Mali despite the announcement by Russia's Wagner mercenary unit earlier this month that it would be withdrawing.
Baker Hughes predicts a drop in spending by producers as tariffs pinch the demand
Baker Hughes, a U.S. oilfield services provider, forecasted steeper cuts in global oil producer spending as tariffs dent the demand expectations and drive down crude prices.
Baker Hughes, a rival of Halliburton, expressed concern on Tuesday that low oil prices may cause oilfield activity to decline in North America.
Baker Hughes of Houston, which on Tuesday reported a better-than expected first-quarter profit, now expects that global upstream expenditures will be down by single digits by 2025.
Baker Hughes has said that oil and gas producers' spending in North America (excluding Mexico) is expected to drop by low-double-digits. This compares with an earlier expectation of a decline in the single-digit range.
Spending is expected to drop to the mid-to-high single digits in international markets, compared to a previous prediction that spending would be flat or down on an annual basis.
In North America, the delays in discretionary spending are continuing into the second quarter due to ongoing uncertainty. The recent volatility in oil prices could also have a negative impact on second-half activity, especially in the United States, said Baker Hughes CEO Lorenzo Simonelli.
Simonelli stated that the prospect of a glut of oil, rising tariffs and uncertainty in Mexico, as well as a weakness in Saudi Arabia's activity, collectively limit international upstream expenditure levels. He added that this weakness will be partially offset by the strength of markets such Brazil, and other countries in the Middle East, Asia Pacific and the Middle East.
The company warned about the cost impact of tariffs on U.S. imported goods from China, Germany and Britain, as well as a more modest impact due to steel and aluminum tariffs. Baker Hughes said it also sources oilfield chemicals and components from Canada and Mexico.
The company said that it would increase its domestic sourcing and be in contact with customers about recovering some costs.
Baker Hughes predicted a $100-200 million impact on annual earnings, before interest, taxes, depreciation, and amortization.
Baker shares fell 5% to $36.46 in the early morning hours of Wednesday.
Baker Hughes is expected to benefit from the emergence of liquefied natural gas technologies and equipment, following the lifting of the U.S. President Donald Trump's moratorium on new LNG permits and the rising demand for gas and electricity for data centers.
Simonelli stated that several key LNG customers along the Gulf Coast have indicated plans to expand their capacity beyond 2030. This will provide greater clarity about the possibility of an increase in installed capacity over the 800 million tonnes per year anticipated by the end decade.
Simonelli stated that customers are not pulling back on LNG, gas pipeline or data center projects.
The company expects to order at least $1.5 Billion in data center equipment within the next three-year period.
(source: Reuters)