Symax Fintech Daily Market Insights 10.01.24

In a sign of Russia’s continued resilience to Western sanctions, the nation is on pace for a second year of record oil drilling. In the first 11 months of 2023, according to industry data, Russia drilled oil production wells with a total depth of 28,100 kilometers. BB

US oil output to touch a record high in 2024, but growth will slow – EIA – U.S. crude production will hit records over the next two years but grow at a slower rate, the U.S. Energy Information Administration said on Tuesday, as efficiency gains offset a decline in rig activity. The rise in U.S. output comes as the Organization of the Petroleum Exporting Countries and its allies are cutting their own output in a bid to boost oil prices.

Indian refiners set to ask for extra Saudi oil after sharp price cut – Two Indian state refiners are seeking to boost imports of Saudi crude oil after the kingdom cut the official selling price of its key export grade for February to the lowest in 27 months, company sources said. Indian Oil, the country’s top refiner, and Bharat Petroleum, are looking at lifting an additional 1 million barrels of oil each from Saudi Aramco in February, the sources said.

Argentina rains and mild temperatures to benefit soy, corn – Argentina’s 2023/24 soybean and corn crops will see a boost in January due to rains and moderate temperatures for the Southern Hemisphere summer, the Buenos Aires Grains Exchange said in its monthly weather report on Tuesday. Argentina is one of the world’s top exporters of soybean oil and meal, and the third-largest exporter of corn. 

Indian coffee exports set to surge thanks to global price rally – India’s coffee exports are likely to rise as much as 10% in 2024 as a rally in global prices prompts European buyers to pay premiums in order to increase purchases from the country, industry officials told Reuters. The South Asian country – famous as a tea producer – is also the world’s eighth-largest coffee grower, mainly churning out the robusta beans used to make instant coffee.

Asian buyers profit from record discounts for near-term LME copper – Oversupply weighing on near-term prices of copper on the London Metal Exchange has created record discounts against longer-dated contracts and an opportunity for Asian buyers to purchase the metal cheaply, traders said. The discount, or contango, for the cash copper over the benchmark three-month contract on the LME hit a record high of $108 a metric ton on Jan. 8, while the discount over the February contract stands at $58 a ton.

Norway parliament votes in favour of seabed mining, as expected – Norway’s parliament on Tuesday voted in favour of allowing Arctic seabed mineral exploration, in line with a deal reached between the government and key opposition parties last month, overcoming objections from environmental campaigners. The decision comes as Norway hopes to become the first country to make deep-sea mining happen on a commercial scale and secure critical minerals and jobs despite concerns over the environmental impact and international calls for a moratorium.

Colombia awards Parex Resources license for geothermal project – Colombia has awarded its first-ever license for developing a geothermal energy project to produce electricity to Canada’s Parex Resources, according to a government resolution seen by Reuters on Tuesday. Colombia has set its sights on developing renewable energy sources – such as solar, wind and geothermal – as part of President Gustavo Petro’s goal to wean the major regional coal and oil producer off its dependence on fossil fuels.

Portugal’s Galp seeks to join formal complaint against US LNG exporter – Portugal oil and gas firm Galp has asked U.S. regulators to allow it to join BP and Shell’s formal complaints against U.S. liquefied natural gas exporter Venture Global LNG, a filing showed on Tuesday. Shell and BP have asked the Federal Energy Regulatory Commission to require Venture Global to disclose plant commissioning data to determine why commercial operation at Venture Global’s Calcasieu Pass terminal is stalled.

EU 2023/24 soft wheat exports down 11% by Jan 7 – Soft wheat exports from the European Union since the start of the 2023/24 season in July had reached 15.84 million metric tons by Jan. 7, down 11% from a year earlier, data published by the European Commission showed on Tuesday. EU barley exports totalled 3.17 million tons, up 3% from the corresponding period in 2022/23, while EU maize imports were at 9.03 million tons, down 43% from a year earlier.

South Korea’s NOFI buys around 135,000 T corn in tender – Leading South Korean animal feed maker Nonghyup Feed purchased about 135,000 metric tons of animal feed corn in an international tender on Tuesday, European traders said. It was purchased in two consignments.