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After Russia sanctions, BGN CEO looks to petchem and Med growth for asset purchases.
BGN, a global commodities trader, sees the new sanctions against Russia as an opportunity for it to increase its presence on the Mediterranean market of energy products, said its chief executive on Monday. It is also considering investing in petrochemicals. In an interview given at the ADIPEC conference in Abu Dhabi, Ruya B. Bayegan, CEO, BGN, said that it was difficult to estimate how much trade would change in the Mediterranean as a result of recent sanctions against Russia. She said, "These changes will increase the presence of our company." We are already strong in the Med, with (oil) products. BGN has a new strategy, which involves shifting from trading to owning assets. Bayegan explained that this is to diversify BGN. She said that BGN was "studying" the possibility of acquiring petrochemical assets in Europe, including potentially distressed plants which could be relocated elsewhere. Bayegan noted that the sector was in a "bad phase." Bayegan said that the company was looking for upstream opportunities. Bayegan, who said BGN trades in 120 different countries, said that it finances its investment push with a combination equity, balance-sheet cash and "different partnership" while its trading arm is supported by established trade financing lines. In the same interview with the CEO, Wael Amer, the company said it is actively hiring to support growth. Its focus will be on expanding operations in the U.S.A., Latin America and Asia. Amer stated that recent key hires included co-heads of its LNG desk as well as a global director of metals. Amer stated that BGN has been supplying 100% of Egypt's LPG for the past eight years. Amer said that BGN recently signed a contract to supply 42 cargoes liquefied gas to Egypt. Amer stated that BGN loads one crude cargo per month in South Sudan and like its competitors, it makes prepayments on its cargoes.
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Chile's Codelco reduces copper production guidance for 2025, despite higher production in September
Chile's Codelco - the world's biggest copper producer - cut its forecast on Tuesday for 2025 production, despite a higher output in the first nine months of the year through September. The state-owned mining company lowered its copper output guidance for this year to between 1.31 and 1.34 millions metric tonnes, down from an earlier estimate of between 1.34 to 1.37million metric tons. However, it still hopes to surpass last year's 1.32 million tons. Last week, copper prices reached a record high due to concerns about mine supply and the prospect of a U.S. China trade agreement. Codelco has highlighted the production increase at the Ministro Hales Mine and the importance of the Rajo Inca project structural at the Salvador mine which is increasing production. Ruben Alvarado, CEO of the company, said that the cut in guidance "doesn't jeopardize expectations" to produce 1.7 millions tons per year by 2030. The output of the country increased by 2.1% The miner produced 937,000 tonnes in the first nine month of the year. This is a 2.1% increase over the same period the previous year. The increase in production was achieved despite a July 31 accident at Codelco's flagship El Teniente Mine, which caused a temporary stop to mining and melting. The company stated that "this unfortunate accident has impacted the results of production achieved at the end the second quarter this year." Alvarado said that Codelco anticipates having more conclusive data about the accident before the end of the calendar year. Vice President of Operations Mauricio Baraza stated that Codelco expects to also have a long term development plan for El Teniente by the end of the year, which will help mitigate the lack production using resources from the southern part of the deposit. He said it would take three years for El Teniente to reach the level of production they had prior to the accident, in which six workers were killed. The company reported a profit before tax of $606.9 millions from January to Septembre, a little below the $612.2 that was reported during the same period in 2013. Reporting by Fabian Cambero, Aida Pelaez Fernandez and Rod Nickel; editing by Kylie Madry.
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EU warns that MMG's Anglo American nickel deal could divert nickel away from Europe
EU antitrust regulators warned on Tuesday that the plan of Hong Kong-listed MMG to purchase Anglo American's Brazilian Nickel business could allow MMG to divert Ferronickel away from Europe, and harm European stainless steel production. The European Commission, the EU's competition enforcer opened a detailed investigation into the deal amid global concerns over the supply of key mineral and China’s dominance. Anglo American announced The sale In February, two ferronickel projects and two greenfields in Brazil were completed. In a recent statement, EU Antitrust Chief Teresa Ribera stated that ferronickel is an important input for European producers in order to produce high-quality stainless steel with low emissions at competitive prices. This is crucial for many sectors. She said, "Our investigation is aimed at verifying whether this concentration can jeopardize continued and reliable access to this resource in Europe." The Commission stated that a divert of ferronickel, along with limited alternatives supply sources, could negatively affect the price, quality, and a significant share of European stainless-steel production, affecting its ability to compete internationally. MMG and Anglo American both said that they were committed to this deal. MMG and Anglo American said they were committed to the deal. The Commission will make a decision by 20 March on whether or not to approve the deal. It can also extend the period if new concessions are made. (Reporting and editing by Sharon Singleton; Foo Yunchee)
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Kremlin: Russia is in constant contact with Venezuela about Caribbean tensions
Dmitry Peskov, Kremlin spokesperson, was quoted on Tuesday as saying that Russia is in constant communication with Venezuela about tensions in Caribbean. Peskov told reporters during a press briefing that "we have constant working contact with Venezuela" in response to questions regarding whether Moscow is extending assistance to Caracas. Tass reported that Peskov refused to provide any additional details regarding the nature of these contacts. Peskov said, as quoted by TASS last weekend, that Russia wanted to see the situation between Venezuelans and Americans remain calm, and ensure there were no new conflicts in the area. The Russian Foreign Ministry denounced the "excessive" military force used by the United States on the Caribbean Sea at the weekend and reaffirmed their support for Venezuelan leaders. At least 14 boats have been targeted by a U.S. anti-drug campaign in the Caribbean, eastern Pacific and the Indian Ocean. 61 people were killed. In recent months, the United States has increased its military presence in Caribbean. In May, Russian President Vladimir Putin signed an agreement with Venezuelan President Nicolas Maduro in Moscow. (Reporting and Editing by William Maclean).
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OPEC's oil output rose by 30,000 bpd during October, according to a survey
A survey on Tuesday found that OPEC oil production increased in October following an OPEC+ deal to increase production. However, the rate of growth was much slower than it had been during September and summer. According to the survey, the Organization of Petroleum Exporting Countries (OPEC) pumped 28,43 million barrels of oil per day last month. This is up 30,000 barrels from the total of September. Saudi Arabia and Iraq saw the biggest increases. OPEC+ - a grouping of OPEC members and their allies, including Russia - has slowed down the pace at which its output increased in October, due to growing concerns about a possible glut. OPEC+, which includes OPEC and its allies, including Russia, has slowed the pace of its output increases for October, due to growing concerns over a possible supply glut. According to an agreement between eight OPEC+ member countries covering October output, five of the OPEC-members - Algerian, Iraqi, Kuwaitian, Saudi Arabian and UAE - had to increase output by 86,000 bpd, before the effects of compensation cuts totaling 140,000 bpd. The survey shows an increase of 114,000 bpd by the five countries, but decreases in Nigeria Libya and Venezuela have offset these gains. Many outside sources estimate the output of Iraq and the UAE higher than those countries themselves. Other estimates, like those from the International Energy Agency (IEA), say that they pump significantly more than the quotas. The survey aims at tracking supply on the market. It is based upon flow data provided by financial group LSEG and other companies who track flows such as Kpler. Also, it includes information provided by oil companies, OPEC, and consultants. (Reporting and editing by David Goodman)
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As the market waits for US jobs data, gold slips by more than 1%.
The dollar reached three-month highs as traders awaited U.S. data to determine the Federal Reserve's policy. As of 10:54 am EST (1554 GMT), spot gold was down by 1.1% at $3,959.56. U.S. Gold Futures for December Delivery fell 1.1% to $3968.10. Dollar index trades at three-month highs. This makes gold more expensive to other currency holders. David Meger is director of metals at High Ridge Futures. "With the dollar reaching new highs, it's affecting the gold price. Fed Chair Jerome Powell said that although the U.S. Central Bank cut interest rates in the past week, the rate reduction could be the last for the year. CME Group's FedWatch shows that traders now expect a 71% probability of a Fed rate cut during the December 9-10 meeting. This is down from more than 90% one week ago. Gold that does not yield is a good investment in low interest rate environments and times of economic uncertainty. Investors are paying more attention to non-official economic data such as the ADP National Employment Report, since the U.S. Government shutdown is likely to be the longest in history and will halt the release of official government data. ADP's October report is scheduled to be released Wednesday. Fed officials' comments have revealed differing views on how to close the data gap. Bullion has fallen by 9% since its October 20 record high, despite a 53% gain this year. Gold is losing some of its froth, but still pricing in concerns about Fed independence, the possibility for stagflation and underlying geopolitical risks and international tensions. In a note, Rhona Connell, an analyst with StoneX, stated that some of the froth had been blown away in a much needed correction. Palladium dropped 3.1%, to $1400.35, while platinum fell 1.2%, to $1,546.88. (Reporting from Noel John in Bengaluru and Pablo Sinha; Editing by Alexander Smith, Paul Simao and Paul Simao).
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Nigerian army confirms 19 deaths in Kano clashes, including troops and bandits
Nigeria's military said on Tuesday that 19 armed bandits had been killed in a gunfight in Kano State, marking an outbreak of violence rarely seen in this commercial hub in the northwest. In a press release, Babatunde Zubairu, the Army's spokesman said that in addition to two soldiers who died during the operation, a vigilante from the locality also perished. The army reported that the clash took place in Shanono where troops, backed by security agencies, raided an underground bandit den. The operation is part a larger military campaign to combat the escalating violence in northern Nigeria where armed group have murdered and kidnapped tens of thousands in recent years. Separately, Nigerian-Nigerian forces defeated an attack on a military facility in northeast Nigeria by Boko Haram fighters and Islamic State West Africa Province(ISWAP) fighters early Tuesday morning, killing six insurgents. The army reported that additional fighters were killed by airstrikes in the aftermath. In a press release, the regional counter-insurgency force of the Army said that an assault began at 0330 GMT on Forward Operating Base Kangar in Borno, a state bordering Niger. The attack involved drones with armed weapons and mortar fire. The statement stated that several soldiers and civilian JTF were injured, but they were quickly evacuated to receive treatment. Ahmed Kingimi, Maiduguri (Additional reporting by Ahmed Kingimi; writing by Elisha Gbogbo; editing by Aidan Lewis and William Maclean).
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Brazil's Conab increases sugar production despite smaller cane crops
Conab, Brazil's crop forecaster and food supply agency, raised Tuesday its projections for sugar production by the country in 2025/26. The season began in April. Conab's estimate of Brazil's sugar output was 45.02 millions metric tons. This is a half-million tons more than its previous forecast. This is higher than the 44.12 millions tons of sugar produced last year. According to the government agency, sugarcane production fell by 0.35% in the last stages of harvesting. Conab stated that the sugar production was higher despite the smaller sugarcane harvest because mills allocated more cane for the production of sweetener. They are now using less sugarcane to produce fuel ethanol. The Agency reduced its estimate of cane-based alcohol production by over 200 million liters to 26,55 billion liters. Brazil will, however, produce more corn-based bioethanol in 2025/26, with 9.6 billion liters compared to 7.8 billion in the previous crop.
Gold reaches record highs on Fed rate-cut betting, US-China Trade woes
Gold reached a new high on Wednesday just below the $4,200 per ounce mark, boosted by expectations for further U.S. interest rate cuts. Meanwhile, renewed U.S. China trade concerns also increased demand for safe havens.
As of 0604 GMT spot gold was up by 1.1%, at $4,185.59 an ounce. It had earlier reached a session high of $4193.38. U.S. Gold Futures for December Delivery gained 1%, to $4204.30.
The U.S. president Donald Trump announced on Tuesday that his administration would produce a list on Friday of "Democrat programs" which will be closed due to the federal government shut down.
Matt Simpson, senior analyst at StoneX, said that the U.S. shutdown and Jerome Powell's dovish remarks have been two of the most recent reasons why gold prices are on an upward trend.
Federal Reserve Chair Jerome Powell stated that the U.S. labor market was subdued. However, the economy may be "on a slightly firmer trajectory than anticipated."
Powell said that interest rate decisions will be taken "meeting by meeting", balancing the labour market's weakness against persistent inflation above target.
Investors have priced in the near certainty of a Fed rate cut of 25 basis points in October and December.
Bullion is more likely to perform well when interest rates are low and there is political and economic uncertainty.
Gold has gained 59% in the past year, mainly due to geopolitical and financial uncertainties, central bank purchases, a de-dollarisation trend, and strong exchange-traded funds.
Simpson added that "this rally has become a momentum trading, where traders pile into the market to chase away prices."
Trump stated that Washington is considering cutting off some trade relations with China, such as in the cooking oil sector. On Tuesday, both countries started imposing port fees tit for tat.
The International Monetary Fund increased its global growth forecast for 2025, citing better than expected tariff and financial conditions. However, it warned that renewed U.S. China trade tensions may curb growth.
Silver climbed 1.9% to $52.43, following the gold rally and tightening of supply on the spot market.
Palladium and platinum both rose by 0.8%, to $1,537.19, respectively. (Reporting and editing by Sherry Phillips, Subhranshu Sahu, and Ishaan Aroor in Bengaluru).
(source: Reuters)