Symax Fintech Daily Insights 11.09.23

Oil cut extension raises risk of Saudi economic contraction this year – Saudi Arabia faces the risk of an economic contraction this year following its decision to extend crude production cuts, highlighting its still heavy reliance on oil as reforms to diversify are slow moving. Riyadh says it aims to stabilise the oil market by extending a voluntary oil output cut of 1 million barrels per day until the end of 2023. Its announcement on Tuesday sent oil prices above $90 for the first time this year, but they are below average prices of around $100 a barrel last year in the wake of Russia’s invasion of Ukraine.

Russia to return to grain deal once all Moscow’s conditions met, Lavrov says – Russia will return to the Black Sea grain deal ‘the same day’ as Moscow’s conditions for export of its own grain and fertilisers to the global markets are met, Foreign Minister Sergei Lavrov told reporters on Sunday. Russia quit the deal in July, a year after it was brokered by the United Nations and Turkey, complaining that its own food and fertiliser exports faced obstacles and that insufficient Ukrainian grain was going to countries in need.

Philippine ministers propose cut in rice tariffs to curb retail prices – The Philippines’ finance ministry has recommended a series of measures, including a cut in tariffs on imported rice, to curb surging retail prices that are fuelling inflation, its secretary said. The ministries of finance and economic planning are proposing a reduction in the 35% rice import tariff rates to between zero and 10%, Finance Secretary Benjamin Diokno told reporters.

First Quantum reaches deal with Panama copper mine union, avoids strike – The Panamanian unit of Canada’s First Quantum Minerals and a workers union at the company’s key copper mine in Panama said on Saturday they had reached an agreement, avoiding a planned strike over profit sharing and wage increases. The worker’s union, Utramipa, had threatened on Thursday to stop work on Saturday, alleging an impasse in negotiation with the directors of Minera Panama, the miner’s local unit. The company indicated on Friday that it was negotiating with workers.

Tantalex secures Glencore’s backing for Congo lithium project – Tantalex Lithium, a Canadian junior miner that is aiming to produce lithium from the Democratic Republic of Congo, said on Friday its tailings project has secured the backing of Glencore. The Swiss miner and trader will pay a staggered $5 million to Tantalex as part of the marketing off-take agreement and has agreed to finance a third of the capital requirements for the DRC project, if it meets its conditions, Tantalex said in a statement. 

Chevron gambles on untested laws to halt Australia LNG strike action – Chevron Australia no longer expects to reach a deal with unions and will instead pursue an untested legal strategy to stop industrial action at its Gorgon and Wheatstone liquefied natural gas facilities as unions prepare for full scale strikes. Hundreds of workers at the facilities, which account for over 5% of global supply, started short strikes on Friday after five days of last-minute negotiations broke down without a deal. Unions have said they will escalate to two weeks of 24-hour strikes from Thursday.

Europe’s gas storage must peak early this autumn – Europe’s natural gas inventories are at a record high for the time of year, but storage additions have slowed sharply, significantly reducing the risk storage sites will become full before the main winter heating season arrives. Inventories across the European Union and the United Kingdom had climbed to 1,071 terawatt hours by Sep. 6, according to Gas Infrastructure Europe (“Aggregated gas storage inventory”, GIE, Sep. 8).

Russia labels global transport union ITF ‘undesirable’ organization – Russia has designated the International Transport Workers’ Federation as an “undesirable” organisation in a step the union said will have significant ramifications for 1.6 million Russian members, the ITF said on Friday. The label “undesirable” has been applied to dozens of foreign groups since Moscow began using the classification in 2015, and effectively bans an organisation outright. 

UK seeks feedback for possible ultra-long gilt tender – The United Kingdom Debt Management Office said it was considering holding a tender of a gilt with a maturity of more than 40 years on Sept. 27, and was seeking market feedback. The DMO said it had received requests from some bond dealers and investors for such a sale, and wanted to gauge if there was broader appetite.