South America








Energy Markets

Carbon credit projects in Brazil are a source of income for illegal loggers

Carbon credits have been issued to companies around the globe in exchange for their investments in conservation projects in Brazil. These projects aim to protect the Amazon Rainforest. Many of these projects benefit people and companies fined by Brazilian authorities because they destroyed the rainforest. Reporters examined 36 conservation projects in Brazil's Amazon that offered voluntary carbon offsets to the world's largest registries. The Brazilian environmental agency Ibama has punished landowners, developers, or forestry companies for their involvement in illegal deforestation. Offenses included clear-cutting rainforests without authorization, transporting trees felled without valid permits, and inputting false information into a government...

Oil & Gas

Natural Gas

Exxon exceeds profit expectations with higher production despite low oil prices

Exxon Mobil's second-quarter profit beat Wall Street estimates on Friday, as increased oil and gas production enabled the U.S. top oil producer to overcome lower crude oil prices. According to data compiled and analyzed by LSEG, adjusted earnings for the second quarter totaled $7.1 billion or $1.64 a share. This was higher than analyst consensus estimates of $1.56 a share. The oil producer reported that the production of oil and gas was at its highest level for any second-quarter since Exxon Mobil was formed in 1995 by the merger. Energy sector is struggling with volatility in prices as OPEC+ producers...

Oil & Gas

Trump imposes tariffs on Brazil of 50%, but excludes aircraft, OJ and energy

Donald Trump, the U.S. president, imposed a 50% tariff Wednesday on Brazilian goods in response to what he called a witch hunt against former President Jairbolsonaro. However, he softened his blow by exempting sectors like aircraft, energy, and orange juice from higher levies. This came as a welcome relief to many in Brasilia who, since Trump announced his tariff earlier in the month, had been calling for protections for major Brazilian exporters caught up in the crossfire. The shares of Embraer, a plane manufacturer, and Suzano, a pulp maker rose. The Brazilian Treasury Secretary Rogerio Ceron said to reporters that...

Fuel Oil

Lobby group says that oil shipments to the US from Brazil will resume following tariff exemption

The head of the Brazilian oil lobby IBP said on Wednesday that energy companies in Brazil will resume oil exports to the United States following the exemption from U.S. duties for several oil products. The top Brazilian export to the U.S. is oil. It was exempted from the 10% tariff on Brazilian exports in April, but the uncertainty about whether it would be exempted under the new tariffs announced on the 9th of July led to a stoppage in shipments throughout the month. Despite the fact that President Donald Trump's Wednesday decree increased tariffs on Brazil by 50%, several Brazilian...

Refined Products

According to a lobby group, uncertainty over tariffs has halted oil shipments from Brazil into the US.

Roberto Ardenghy of the oil lobby group IBP told reporters on Wednesday that energy companies in Brazil have suspended oil exports to the United States following President Donald Trump's announcement of 50% tariffs against Brazil. The U.S. is Brazil's largest export market. Oil was exempted from the 10% tariff on Brazilian exports in April, but it remains unclear if the commodity will be exempted under the new tariff of 50% that is set to take effect on Friday. Ardenghy said, "This time there is no way to know." IBP represents Brazilian oil companies such as Petrobras, Shell, TotalEnergies ExxonMobil, Equinor,...

Crude Oil

Petrobras oil production rises 7.6% during Q2 due to increased production vessels

Petrobras, the state-owned oil company in Brazil, reported that it produced 2,32 million barrels per day of oil in Brazil during its second quarter. This represents a 7.6% increase over the same period the previous year. New production vessels have increased the output. The firm reported that four floating production ships increased their output in the second quarter. One reached its peak production, and another began operations before schedule. This boosted the output for the entire period. Petrobras totaled 2.91 million barrels equivalents per day (boed), up 7.8% on the year before, while sales of oil and gas, as well...

Oil & Gas

Trump tariffs on Brazil's chemical exporters lead to order cancellations

Brazilian chemical companies, who exported $2.4 billion in products to the U.S. during the past year, are facing a wave of contract cancellations, as President Donald Trump threatened a new tariff of 50% on Brazil's exports starting August 1. Andre Cordeiro of Brazilian chemical lobby Abiquim said that since Trump's announcement export orders for certain resins, compounds and other materials used in the production of fertilizers have been cancelled. Brazil supplies these products to the U.S. agricultural sector. Cordeiro explained that "fundamentally these decisions are made because it is bet on whether he will apply the tariff." Cordeiro added that...

Oil & Gas

Colombia's Petro has threatened to change Glencore's contract regarding Israel coal exports

The Colombian president Gustavo Petro threatened on Tuesday to unilaterally change Glencore's contract with the government if it continued to export coal to Israel. However, the company claimed that the shipments had already stopped in accordance with a presidential order. Petro, who spoke at an event organized by the Community of Latin American and Caribbean States for CELAC on energy, said: "I'm willing to unilaterally alter the concession contract." The president warned that, if Glencore refused to comply with his order to suspend the shipment of coal from the mine, he would call on the local communities to blockade the...

Oil & Gas

Investors suggest alternatives to YPF in dispute between US and Argentina

The U.S. Government sided with Argentina in its effort to temporarily suspend a court order requiring it to turn over its 51 percent stake in the oil and gas company YPF as part of a $16.1-billion judgment won by two investors. In a late-night filing, the U.S. government informed the 2nd U.S. The 2nd U.S. Circuit Court of Appeals stated that it is in the public's interest to resolve the dispute on its merits "free of the rushed compulsion of a non-stayed turnover order, and any negative impact on U.S. Foreign Relations with Argentina." Petersen Energia Inversora, Eton Park Capital...

Oil & Gas Refining

Vibra shares fall on news that Petrobras is eyeing retail fuel

Bloomberg News reported on Thursday that the state-run oil company Petrobras is considering a return to retail fuel and its board will discuss this topic next week. Vibra shares fell 2.5%. This makes the company the worst performer in the benchmark Bovespa index, which traded near flat. Petrobras' shares fell around 0.5%. Petrobras has no plans to resume retailing of fuel, according to two people who are familiar with the situation. One source noted that Vibra, an ex-Petrobras subsidiary, has a clause prohibiting the oil giant from competing with it until 2029. Source added that even if this matter was...

Oil & Gas

Petrobras CEO: US tariffs on Brazil may cause Petrobras to redirect oil to Asia

Petrobras, the Brazilian state-owned oil company, may redirect oil sold to the United States to Asia and Pacific due to increased tariffs announced by the United States on Brazil, the chief executive said on Thursday. Magda Chambriard, CEO of Petrobras, said that although oil and gas exports account for a large share of Brazil's trade with the United States it is not a vital market for the company. "We don't export much (to the U.S.). She said, "In general, we're not too worried" in her first comments to the public about the 50% tariff announced by President Donald Trump last...

Oil & Gas Refining

Data shows that India's imports of Russian oil increased slightly between January and June.

Sources say that India's oil purchases from Russia increased marginally during the first half this year. Private refiners Reliance Industries Ltd. and Nayara Energy accounted for almost half the total. The data shows that India, which is the third largest oil consumer and importer in the world, received approximately 1.75 million barrels of Russian oil per day from January to June this year. This represents a 1% increase over the previous year. State companies buy Russian oil from spot markets, but the two private refiners are bound by term contracts. India's purchases at discounted prices of Russian oil increased after...

Oil & Gas

How a US tariff of 50% could affect Brazilian exports

U.S. president Donald Trump announced that he will impose tariffs of 50% on all Brazilian products starting August 1. This could have a significant impact on South America’s agricultural powerhouse. Brazil's second largest export market is the United States, behind China. Brazil's primary export to the U.S. is oil, but it is also a major market for Brazilian manufactured products such as aircraft and machines. COFFEE Brazil is the largest coffee exporter in the world. The U.S. is the primary destination. Brazil exports 16.7% of its coffee to the U.S. Four sources in the trade told us that U.S. roasters...

Fossil Fuels

Oil & Gas Refining

Trump tariffs spark 'deep concern' among Brazil chemical firms

A Brazilian association of chemical companies, which includes large U.S. companies like ExxonMobil, Dow Chemical, and ExxonMobil, has expressed "deep concerns" about a U.S. Executive Order that raised tariffs on Brazilian imports to 50%. Abiquim, in a Friday statement, said that the Brazilian chemical industry is inextricably linked with the United States. The relationship was marked by "integration," and "cross investments." Andre Cordeiro said that the impact on Brazilian chemical exports would be significant, as it would compromise supply chains, jobs and investments both in Brazil and in the U.S. Abiquim reported that more than 20 of the chemical companies...

Fossil Fuels

Codelco Chile says it is still searching for missing workers at El Teniente Mine

Andres Musik, El Teniente’s general manager, said that Codelco had not yet contacted five workers who were missing at the Andesita Unit of El Teniente following a seismic event which killed one person. He said that Codelco expected the aftershocks to subside in the next twelve hours, which would allow it to start efforts to contact the workers. Music stated in a recent press conference that "the event we recorded yesterday was one of, if not the biggest event" the El Teniente Mine has ever experienced. He noted that the incident was a magnitude 4.2 earthquake. Andesita was one of...

Fossil Fuels

Anglo American's production of copper and diamonds falls in the first half

Anglo American, a global miner, reported on Thursday a 13% drop in copper production for the first half of this year, to 342,200 tons. It also reported a 26% decline in rough diamonds as the demand remains weak. The London-listed company still expects 690,000-750,000 tonnes of copper to be mined this year. This is down from 773,00 tons in 2024. Metal is used for electrical wiring, and demand will increase as electric vehicles and renewable infrastructure are developed. After BHP failed to acquire the miner last year, it is now restructuring its business, focusing mainly on iron ore and copper....

Mining

Mineral Resources

Mineral Resources

Tariffs increase US operations, but Gerdau's adjusted profits fall by nearly 9%.

The Brazilian steelmaker Gerdau reported a 8.6% drop in its adjusted net profit for the second quarter of 2018, compared to last year. This was slightly lower than analysts' expectations, despite a stronger performance by North American operations because of U.S. Tariffs. Gerdau, the largest Brazilian steelmaker in terms of market capitalization with mills throughout the Americas reported a net profit of 864 million reais (154.26 millions dollars) for the three-month period ending June 30. LSEG polled analysts who expected 847 million reais. Gerdau stated in its earnings report that the decline in profits was primarily due to the results...

Environment

BHP and Vale accused by UK law firm of 'cheating out' $1.7 billion in legal fees

BHP and Vale face a London suit from a law firm that represents hundreds of thousands people in relation to Brazil's worst environment disaster. The firm alleges the companies tried to cheat them out of legal fees through settlements. BHP stated that it would contest the allegations and reject them "in their entirety". Vale declined comment. Pogust Goodhead will demand 1.3 billion pounds ($1.7billion) in unpaid fees from BHP, the company that represents claimants in a case against BHP relating to the collapse of the Fundao Dam in Mariana in the southeast Brazil in 2015. In the case before London's...

Coal

China's iron ore exports continue to rise as storm clouds gather, Russell

Iron ore is the best performing commodity this year, with a price of over $100 per metric ton. This is despite signs that China's steel industry has been slowing down. The Singapore Exchange's most traded iron ore contract ended Wednesday at $101.71 per ton, down from $102.74 at its previous close. The rolling front-month contracts have traded within a narrow range this year. A high of $107.81 per ton was reached on February 12, and a low $93.35 per ton was achieved on July 1. This stability is due to the fact that China imports 75% of all seaborne volumes....

Mineral Resources

Trump imposes scaled-back copper tariff, US prices plunge

Donald Trump announced on Wednesday that the United States would impose a tariff of 50% on copper pipes, wires, and other copper products. However, the details of this levy were not as comprehensive as expected, and did not include copper input materials like ores, concentrates, and cathodes. U.S. Comex Copper Futures fell 19.5% following the announcement. This quickly unwinded a premium that had been growing over the London benchmark in recent weeks, as traders assumed U.S. mines would benefit financially from the tariff. Trump teased his tariff for the first time in early July. He implied that the tariff would...

Mineral Resources

Southern Copper warns of a possible short-term impact on copper from the U.S.-China Trade War

Raul Jacob, CFO of Grupo Mexico’s Southern Copper, said that the U.S. - China trade war would affect the global economy and the copper sector. He made this statement on a conference call with analysts to discuss the company’s quarterly results on Wednesday. He said: "We think that an intense trade war between the U.S.A. and China could affect economic growth around the world." Jacob, the Chief Financial Officer, said that he expects the industry to remain resilient over the long term. He said, "We continue to maintain a positive outlook for the long-term future of copper." Jacob said that...

Mineral Resources

Rio Tinto reports smallest first-half profits in five years

Rio Tinto announced its lowest first-half profit in five years Wednesday as iron ore price remained low due to concerns about oversupply and weak China demand. This was offset by higher earnings from the copper business. The price of iron ore fell in the first half as the top steel consumer, China, decreased its steel production and increased supply from Australia and Brazil. This reduced Rio Tinto's earnings. Morgan Stanley notes that the expectation of China reducing overcapacity and restocking the steel industry before the end of 2025 could lead to an increase in price to $100 per ton by...

Mineral Resources

President of Peru says that he is considering approving $6 billion in mining projects

Dina Boluarte, the president of Peru, said that her government is looking at approving 134 projects for mining exploration and exploitation worth an estimated $6 billion. Boluarte stated in an address before Congress that she expects the formal small-scale mine sector to generate over $5 billion in sales annually by the end this year, and that $4.7 Billion in formal projects are expected to have begun construction by 2026. Officials from Peru, third largest copper producer in the world, are in discussions with informal miners. They launched protests at the end of June, which blocked a major transport corridor used...

Mineral Resources

Chile will ask the U.S. for copper to be included in U.S. - Chile trade agreement

In an interview on Monday with the local radio station Duna, Mario Marcel, Chile's Finance Minister, said that he expects U.S. tariffs on copper to be discussed in Washington as part of broader U.S. Trade talks this week. Marcel said that Chile would request any tariffs be included in a larger trade agreement with the United States. The Trump administration announced that it would impose a 50% tariff on copper imports starting August 1. Chile is a major supplier of red metal to the United States and also of refined copper, though it sends a much larger volume to China....

Pollution

Peru seizes four tons of black-market mercury destined for illegal gold mines

The Peruvian authorities stopped a shipment of four metric tonnes of mercury heading to Bolivia, allegedly for use in illegal gold-mining. This is the latest indication of the growing black market to meet the soaring demand of the precious metal. The container was passed off as crushed rock. However, the customs agency in Peru, SUNAT, said that an analysis revealed it to be laced with toxic mercury. In a press release, SUNAT stated that "we could determine that the mercury was being shipped in its natural form, concealed in shipments of crushed gravel." It was discovered at the Callao Port...

Mineral Resources

Argentina rejects Ganfeng Lithium but approves Galan Lithium as part of its incentive scheme

The Argentine government approved the $217 million project by Australian miner Galan Lithium in Catamarca for a new incentive program called RIGI. However, it rejected a bid from China's Ganfeng to build its Mariana lithium project. Why it's important Last year, the Incentive Regime for Large Investments (RIGI) was implemented as part of President Javier Milei’s efforts to encourage investments in the troubled economy. The RIGI offers benefits such as tax breaks and access international dispute courts for eligible projects. Global mining companies have been watching closely to see if the scheme will encourage investment in the copper industry that...

Mineral Resources

Vale's Iron Ore Production Up 4% With Record Q2 at Key Mine

The Brazilian miner Vale reported that it produced 83.6 millions metric tons (metric tons) of iron ore during the second quarter. This is up 3.7% compared to a year ago, according to the company. Vale's output and sales report said that the growth was mainly due to a second-quarter record set at the S11D project in northern Brazil. This is Vale's top iron ore producing mine. It also cited "strong performance" from its Brucutu mining operation located in the southeast. Vale stated that the combination of the new assets ramping-up and the greater operational reliability are supporting a stronger adherence...

Mineral Resources

Jeanette Jara, a member of the coalition communist party in Chile, wants to become Chile's president.

With an unpopular president in place, the left of Chile has chosen to challenge a resurgent Right at the November election. Jeanette Jara is a member from the Communist Party. Jara, the Unity for Chile candidate chosen by voters in the last month, said she would win over sceptical voters by highlighting her record of advancing popular legislation, such as a reduced working week and pensions, under President Gabriel Boric. Jara faces a steep battle in spite of Boric's lack of popularity and her own affiliation to a party. This is a country still haunted by Augusto Pinochet's dictatorship, which...