Speaking at the Financial Times Commodities Global Summit on Wednesday, Christophe Salmon, Trafigura’s Chief Financial Officer, noted that the recent bank shares rout would not cause a knock-on effect on Commodities.
“On banks’ appetite for trading firms, let’s not forget trading firms give banks a lot of business opportunities from hedging to trade finance, M&A and so on…,” the CFO was quoted as saying by Reuters.
Last week, Brent Crude Oil Futures registered lows unseen since 2021 due to fears the bank shares rout could lead to a global downturn and hamper fuel demand.
Yet, since the announcement of a historic deal, involving Credit Suisse’s acquisition by UBS, there has been a slight rebound in share prices.
According to Salmon, banks’ appetite to finance commodities trade will probably not diminish following Credit Suisse’s failure.
“New lenders (are) now active in our sector, which are the export credit agencies. We managed to raise close to $5 billion of competitive term funding with the support of these export agencies,” Trafigura’s Chief Financial Officer said.