(Bloomberg) -- The world’s two biggest metals traders are moving to withdraw large volumes of aluminum from the London Metal Exchange in a complex trade made...
-- The world’s two biggest metals traders are moving to withdraw large volumes of aluminum from the London Metal Exchange in a complex trade made possible by new UK sanctions on Russian metal, raising questions about unintended consequences from the new rules. Trafigura Group and Glencore Plc plan to withdraw the metal to profit from a new multi-tiered system created by the sanctions, according to people familiar with the matter.
Gaming warehousing rules has long been a central part of many traders’ strategy, especially in the aluminum market, and the past week’s moves are unlikely to have a meaningful impact on the wider question of whether the sanctions will be successful at reducing Russia’s revenue from selling metals. One significant risk to the trade is that either the LME or the UK government move to change the rules and so to undercut it. The UK Treasury is keeping the trade license — which created the dual categories of Russian metal — under review as it monitors trade flows and trade practices, according to a person familiar with its thinking.
For the exchange and the broader aluminum market, the immediate consequence of the withdrawals is that the volume of stock that’s readily available to other buyers has fallen to critically low levels. In this article, we are going to discuss the 15 countries with the largest proven oil reserves in the world. You can skip our detailed analysis of the global oil and gas market, the impact of the Russia-Ukraine war on the global oil sector, and the steps taken by major oil companies to achieve net -- Valero Energy Corp. and Chevron Corp.
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