China allows state refiners to access commercial crude reserves due to Middle East tensions, impacting oil prices and cryptocurrency markets.
China has initiated a significant policy shift by allowing state-owned refiners to access its commercial crude reserves due to escalating tensions in the Middle East. This decision, made in April 2026, alters the traditional reliance on strategic petroleum reserves, enabling companies like Sinopec and China National Petroleum Corp. to directly utilize their own stockpiles.
This strategy becomes crucial as the Iran conflict disrupts crucial oil flows through the Strait of Hormuz, a vital conduit for global oil transport. By early 2026, China had built the largest crude reserves globally, estimated at between 1.3 and 1.4 billion barrels, sufficient to cover roughly three to four months of consumption. Given that about half of its crude imports are sourced from the Middle East, the ongoing conflict severely restrains the flow of oil, leading to significant price volatility observed in the marketplace.
The price of crude oil surged from around $60 to over $100 per barrel, ultimately stabilizing near $90, reflecting the immediate impact of reduced supply.
Why has China opted for commercial reserves instead of strategic ones? Releasing strategic reserves tends to signal a crisis, which can generate alarm and speculation. By relying on commercial stockpiles, Beijing maintains a managed appearance of stability, mitigating potential market panic.
How does this situation affect cryptocurrency investors? The disruption in energy supply has broader economic implications that extend beyond mining costs. Oil shocks contribute to rising inflation expectations, influencing central bank policies that ultimately affect risk assets, including cryptocurrencies. Amid the chaos, the allure of decentralized derivatives platforms and oil-linked trading products is growing, providing new avenues for investment.
Investors should closely monitor developments in tokenized commodity exposure, as digital representations of oil and oil futures are gaining traction in decentralized finance discussions. Engaging with these emerging trends can provide strategic opportunities for forward-thinking investors, particularly amid the ongoing supply crisis.
BEIJING, June 10 (Xinhua) -- China's producer price index (PPI), which measures costs for goods at the factory gate, went up 3.9 percent year-on-year in May, an increase of 1.1 percentage points from April, the National Bureau of Statistics (NBS) said Wednesday.
Among industries with rising prices that contributed to the year-on-year PPI rise last month, the mining and processing of non-ferrous metal ores increased by 36.5 percent and the smelting and rolling of non-ferrous metals rose by 24 percent. The extraction of petroleum and natural gas, processing of petroleum, coal and other fuels, and manufacturing of chemical raw materials and chemical products also logged notable price increases, the data showed.
The manufacturing of non-metallic mineral products, the production and supply of electric power and heat, and automobile manufacturing recorded price decreases, the data showed.
On a month-on-month basis, PPI rose 0.5 percent in May, down from 1.7 percent in April, the NBS data showed.
NBS statistician Dong Lijuan, in an analysis of month-on-month changes in PPI last month, said the optimization and upgrading of the industrial structure drove up prices in some sectors, seasonal increases in demand led to price rises in certain industries, and fluctuations in international crude oil prices caused prices in some industries to either turn from increases to decreases or see their growth moderate.
From January to May, the PPI increased by an average of 1 percent year-on-year, the data showed.
Wednesday's data also showed that China's consumer price index (CPI), a main gauge of inflation, rose 1.2 percent year-on-year in May. The core CPI, which excludes food and energy prices, increased 1.1 percent year-on-year.
http://www.shanghaisun.com/news/279113514/update-china-ppi-up-39-pct-in-may
Countries in the Middle East have been criticizing Iran’s latest round of retaliatory strikes on regional states, which Tehran said were fired at US military targets.
Iran’s Islamic Revolutionary Guard Corps said it launched strikes at US bases in the region early Wednesday morning. This followed earlier US strikes against Iran.
Egypt’s foreign ministry said it “condemns in the strongest terms” Iran’s strikes against Jordan, Bahrain and Kuwait Wednesday.
The strikes, it said, “represent a flagrant violation of the sovereignty and territorial integrity of these sisterly countries, and a very dangerous escalation that threatens the security and stability of the entire region.”
The United Arab Emirates’ Ministry of Foreign Affairs (MOFA) condemned what it described as “Iranian terrorist attacks on Bahrain, Kuwait, and Jordan” and offered the UAE’s full solidarity with the three countries.
Qatar’s Ministry of Foreign Affairs said Tehran’s strikes were a “flagrant breach of the rules of international law.”
It also stressed the need to “spare the region the consequences of unjustified attacks, and to work towards de-escalation in order to restore security and stability regionally and internationally.”
Palestine’s Ministry of Foreign Affairs said aggression against the Arab states is “unacceptable and condemned, and contradicts the principles of international law and the Charter of the United Nations.”
Kuwait said the strikes it sustained from Iran are a “dangerous transgression that endangers the lives of civilians.” It emphasised Kuwait’s right to defend its own territory, in accordance with international law.
Aboul Gheit, the Secretary-General of the League of Arab States, condemned “in the strongest terms the brutal Iranian attacks” against Jordan, Bahrain and Kuwait. He expressed his deep concern over “Iran’s continued aggression against Arab territories as a means of escalation in its confrontation with other non-Arab states.”
António Costa, President of the European Council, said he had spoken to the Crown Prince of Kuwait to express Europe’s “full solidarity” with Kuwait following the latest attacks.
“Diplomacy is the only way to achieve security and stability in the Middle East — the EU calls on all parties to remain engaged on the diplomatic track,” Costa wrote on X.
https://www.cnn.com/2026/06/09/world/live-news/iran-war-trump-israel
US crude stocks and distillate inventories fell while gasoline stockpiles rose last week, the Energy Information Administration said on Wednesday.
Crude inventories fell by 7.2 million barrels to 426.5 million barrels in the week ended June 5, the EIA said, compared with analysts’ expectations in a Reuters poll for a 4 million-barrel draw.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 801,000 barrels in the week, the EIA said.
Oil prices rose following the larger-than-expected decline in stocks. Global Brent crude futures were trading at US$92.94 (HK$728.37) a barrel, up US$1.49 at 10:39 a.m. ET (1439 GMT), while US West Texas Intermediate futures were up US$1.91 to US$90.11 a barrel.
Refinery crude runs rose by 81,000 barrels per day in the week, the EIA said, while utilization rates rose by 0.6 percentage points to 95.3 percent.
US gasoline stocks rose by 0.2 million barrels in the week to 215.1 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 0.5 million-barrel draw.
Distillate stockpiles, which include diesel and heating oil, fell by 0.2 million barrels in the week to 102.1 million barrels, versus expectations for a 0.5 million-barrel drop, the EIA data showed.
Net US crude imports rose last week by 525,000 barrels per day, EIA said.
Reuters
Saudi Arabia's oil sector is poised for a strong recovery next year as export routes gradually normalise and crude production returns to pre-disruption levels, according to Riyad Capital, which forecasts oil-sector growth of 14.3% in 2027.
The investment bank said its baseline scenario assumes a gradual reopening of oil export routes beginning in September 2026, with Saudi crude production recovering to earlier levels by the same month following disruptions linked to tensions in and around the Strait of Hormuz.
The anticipated normalisation is expected to pave the way for a significant rebound in the Kingdom's hydrocarbons sector after a challenging 2026.
Riyad Capital forecasts oil activities will contract by 3.6% this year before surging 14.3% in 2027 as production recovers and export flows stabilise.
The sharp turnaround would make the oil sector the principal driver of Saudi Arabia's economic expansion next year.
Saudi crude production is projected to average 9.1 million barrels per day in 2026 before rising to 10.4 million barrels per day in 2027, according to the firm's latest Saudi Economic Chartbook. The increase of more than one million barrels a day would represent a major boost to economic activity and government revenues.
Despite the anticipated recovery in output, Riyad Capital expects oil prices to moderate next year. Brent crude is forecast to average $75 a barrel in 2027, down from an estimated $86 a barrel in 2026. West Texas Intermediate crude is projected at $70 a barrel next year compared with $79 a barrel this year, while the OPEC basket price is also expected to decline to $75 a barrel from $86.
The outlook suggests that higher production volumes, rather than stronger prices, will be the primary factor supporting the Kingdom's oil sector and overall economic performance in 2027.
The projected rebound in hydrocarbons activity is expected to have a significant impact on the wider economy. Riyad Capital forecasts Saudi Arabia's overall GDP growth will accelerate to 6.8% in 2027 from just 0.9% in 2026, with the oil sector accounting for much of the improvement. Non-oil activities are also expected to remain supportive, expanding by 4.7% in 2027 after growing 3.0% in 2026.
The recovery in oil production is also expected to strengthen the Kingdom's external position. Saudi Arabia is forecast to post a trade surplus of SAR410 billion in 2027, equivalent to 7.6% of GDP, following a surplus of SAR455 billion in 2026.
By Andrew Topf - Jun 10, 2026, 2:00 PM CDT
The Iran war has made supplies of liquefied natural gas, or LNG, the most strategic since Russia’s invasion of Ukraine in 2022.
Suddenly, countries are scrambling to get their hands on molecules that provide reliable baseload power to industries and homes.
That explains why Germany is buying LNG from Canada. It’s to ensure long-term energy security, reduce reliance on volatile global supplies, and diversify away from Middle Eastern and Russian energy markets.
At the end of May, the Canadian government brokered a deal between the Ksi Lisims LNG facility planned for north of Prince Rupert, on the British Columbia coast, and German company SEFE, which is agreeing to buy 1 million tonnes of LNG per year for up to 20 years
Ksi Lisims LNG is a joint venture owned by the Nisga’a Nation, Texas-based Western LNG, and Rockies LNG, a consortium of Canadian natural gas producers.
The agreement marked the first long-term LNG supply arrangement between a Canadian project and a European buyer.
On June 8, a second, preliminary deal was announced. Germany’s Uniper signed a letter of intent with Ksi Lisims LNG for a possible offtake agreement of 2 million tonnes of LNG per year.
Construction of the facility, which has an annual capacity of 12 million tonnes, could begin in 2027, although there some significant hurdles to overcome.
First and foremost is a Final Investment Decision. To get an FID across the line, Ksi Lisims must show there is enough demand to start construction. The JV already has binding offtake agreements with Shell (NYSE:SHEL) and TotalEnergies. With SEFE and Uniper, up to 7 million tonnes have been annually committed. Will that be enough, and will the facility be profitable in a future LNG market? Ksi Lisims must decide.
The $10 billion project is also facing political and legal challenges about the environmental impacts increased gas production and shipping will have on the area:
Two B.C. Supreme Court petitions were filed over the provincial government's decision last year to deem the Prince Rupert Gas Transmission pipeline "substantially started," meaning it wouldn't need a new environmental assessment.
The liquefied natural gas pipeline's construction, which was authorized in 2014, and a deadline to start it was extended to 2024, spurring the court challenges from Gitxsan Hereditary Chief Charlie Wright and environmentalist groups opposed to the project.
Construction started in 2024 but the pipeline is not yet finished.
These are all significant obstacles, but the bigger question is how Ksi Lisims would get the LNG from the Canadian West Coast to Germany.
Opposition Leader Pierre Poilievre has said the better option would be to ship it from the east coast. But there are currently no operational LNG export plants on that side of Canada; only an import and peaking facility in New Brunswick owned by Repsol.
The only large-scale LNG facility in operation is LNG Canada in Kitimat, close to the proposed Ksi Lisims plant. The first phase of LNG Canada was finished in 2025; a year ago it loaded its first export cargo.
When asked why Ottawa wouldn’t pipe LNG across the country, then ship it directly across the Atlantic to Germany, the energy minister said it's cheaper to move the product by water — through the Panama Canal — than it is to pay tolls through a pipeline.
In practice, Germany may never receive LNG directly from Ksi Lisims, despite the project signing two separate offtake agreements.
Instead, the German companies could employ a concept that is becoming increasingly common in LNG markets: cargo swaps
Here’s how it works: Instead of purchasing the LNG and physically delivering it to Germany, the companies would purchase the cargo and redirect it to buyers in Japan, South Kora, Taiwan or other Asian markets. In exchange, the companies would receive LNG from suppliers closer to Europe, like the US, Qatar, Algeria or Norway.
The result, says EnergyNow via the Financial Post, is lower shipping costs, shorter transit times, reduced congestion risk, and greater flexibility while maintaining the same overall gas supply balance.
This is already how major LNG portfolio players such as Shell, TotalEnergies, BP, and SEFE manage global supply chains. LNG contracts increasingly represent access to molecules rather than a commitment to move specific molecules from one point to another.
In the end, “the molecule doesn’t matter as much as the contract.”
A Canadian LNG contract provides supply from a stable democracy, reduced exposure to political disruptions, diversification from a single supplier, and long-term contractual security, states EnergyNow.
Reuters previously reported that German buyers are increasingly interested in acquiring Canadian LNG cargoes specifically because they can be swapped within global markets. Canadian Energy Minister Tim Hodgson noted that European buyers see value in holding Canadian LNG positions even if the fuel is ultimately consumed elsewhere.
Atlas Lithium, listed on the US Nasdaq stock exchange, is taking part in Benchmark Giga USA 2026, a conference held in Washington focused on the battery supply chain and critical minerals.
The event, held on June 9 and 10, will serve as an opportunity for the company to present the latest advances of its Neves Project, a US$60 million lithium venture in Brazil.
The company’s CEO, Marc Fogassa, will represent the company at the event and will take part in a panel focused on discussing the contribution of lithium produced in Brazil to more resilient supply chains in sectors such as electrification, energy transition, and defense.
"Brazil is an increasingly relevant component in the global critical minerals equation," Fogassa said in a statement. "The Neves Project exemplifies how the country can offer high-quality lithium, with the potential for efficient open-pit mine production in a favorable regulatory environment, as well as generating economic and social benefits for local communities," he emphasized.
Atlas Lithium is moving forward with the Neves Project in the state of Minas Gerais, considered its main asset, with approximately 557km² in lithium mineral rights.
In April, the company announced the hiring of Promon Engenharia, TSX Engineering, Cerne Construções and RETC Infraestrutura to develop the project.
In addition to lithium, the company holds an approximately 20% stake in Atlas Critical Minerals Corporation, a company with exposure to minerals such as rare earths, titanium and graphite, materials associated with industrial chains linked to technology, energy and defense.
Companies with critical mineral projects in Brazil have been seeking to present their initiatives to global investors amid growing interest in the potential of Latin America’s largest country in this mineral chain.
(The original version of this content was written in Portuguese)
The war-driven surge in fertilizer and crop markets is losing steam as concerns about major supply disruptions in the Middle East ease, reducing pressure on global food prices, Bloomberg News reported Tuesday.
Urea (UFB:COM), the world's most widely used nitrogen fertilizer, has fallen more than 30% since mid-April, erasing gains sparked by the Iran conflict. The decline has helped pull down prices for corn (C_1:COM), wheat (W_1:COM) and other agricultural commodities, with the Bloomberg Agriculture Spot Index recently falling to its lowest level since early March.
The retreat marks a sharp turnaround from the early stages of the conflict, when disruptions around the Strait of Hormuz threatened roughly one-third of global seaborne urea supplies and sent fertilizer costs sharply higher. Analysts say markets are now removing much of that geopolitical risk premium, although fertiliser prices remain vulnerable to renewed tension in the region.
Several factors have contributed to the decline. China has loosened fertilizer export restrictions, some South Asian producers have restored output and seasonal demand has weakened as planting activity across much of the Northern Hemisphere. Brazil a major fertilizer importer, has also delayed purchases.
Crop markets have followed a similar path. The Bloomberg Agriculture Spot Index is down roughly 10% from its mid-May peak as favorable U.S. growing conditions, expanding harvests and ample global inventories improve supply prospects. Analysts say global grain stockpiles remain sufficient despite concerns about weather and higher energy costs.
The pullback in fertilizer prices could provide relief for farmers by reducing input costs and may help ease food inflation pressures later this year. However, elevated fuel prices and ongoing geopolitical uncertainty continue to pose risks for agricultural markets.
Brazil's fertilizer buying activity will be closely watched in the second half of the year. Some analysts expect urea prices to stabilize or rebound modestly as demand picks up ahead of future planting seasons.
Why it matters for investors: The decline in fertilizer and crop prices could reduce inflationary pressures that have concerned central banks and consumers alike. Lower agricultural input costs may benefit food producers, livestock operators and consumer-facing companies sensitive to grocery inflation. At the same time, falling fertilizer prices could weigh on earnings expectations for fertilizer manufacturers and agricultural input suppliers, while easing one of the commodity-market risks that emerged during the Iran conflict.
High-grade copper drilling results at White Cliff Minerals’ (ASX: WCN; US-OTC: WCMLF) Rae project in western Nunavut suggest the potential for a significant red metal system at its Danvers target, part of a historical copper area.
Highlight hole DAN26012 returned 19.8 metres grading 6.64% copper from 152.4 metres depth, including 7.6 metres at 11.38% copper and 3 metres grading 17.68% copper, the company reported Wednesday. That interval also included 1.5 metres at 21.1% copper, or one-fifth pure copper, the strongest result yet at Danvers. Rae is about 75 km west of the hamlet of Kugluktuk.
“These results rank among the highest-grade intercepts returned from Danvers and highlight the extraordinary potential of this rapidly growing mineralized system,” White Cliff Managing Director Troy Whittaker said in a release. He cited the target’s grades, growing strike length and open-ended mineralization.
Northern metal momentum
The results at Danvers come amid a heightened focus by governments on securing critical metals in Canada’s Far North, where limited infrastructure across vast distances present challenges to accessing its resource riches. Danvers and the wider Rae project are in Nunavut’s Kitikmeot region which would host the proposed federally-backed Grays Bay Road and Port Project connecting the Arctic Ocean with an all-season road into the Northwest Territories.
Other noteworthy results at Danvers include 6.1 metres grading 1.08% copper from 103.6 metres in hole DAN26009 and 19.8 metres at 1.03% copper from 230.1 metres depth in hole DAN26010. Hole DAN26011 cut 7.6 metres grading 1.92% copper from 144. 8 metres.
The assay results have confirmed copper mineralization over 2.6 km and visual red metal mineralization points to the possibility that the wider system might extend more than 4 km along strike, White Cliff said. The company plans to drill the remaining 8 km on target before August.
Long-known district
Rae sits on the Teshierpi Fault Zone, a district-scale structure believed to host copper-silver mineralization across the historical Coppermine district. Recognized since the 18th century as a copper hotspot, the area has had little modern exploration. White Cliff began exploration at Rae in 2024.
A historical, non-compliant resource estimate from 1968 gives Danvers 4.16 million tonnes grading 2.96% copper.
White Cliff shares gained 13% to A1¢ apiece on Wednesday in Sydney, for a market capitalization of A$34 million (C$33.2 million). The stock has traded in a 12-month range of A1¢ to A3¢.
https://www.canadianminingjournal.com/news/white-cliff-advances-historic-nunavut-copper-district/
Sierra Gorda SCM and Minera Spence agreed to explore commercial and technical collaboration opportunities to generate economies of scale and improve the efficiency and sustainability of their copper operations located in one of Chile's main mining districts.
The memorandum of understanding (MOU) signed by the companies contemplates evaluating options to improve the competitiveness of their mines, which face declining ore grades, operational challenges and reduced production.
The agreement seeks to leverage the proximity of the two operations in the municipality of Sierra Gorda, Antofagasta Region.
Areas of discussion will include supply chains and operational processes, with the aim of addressing common challenges, identifying shared solutions and achieving sustainable long-term results.
The MOU is considered key to further strengthening the operations of Sierra Gorda owners KGHM International (55%) and South32 (45%), as well as BHP the sole owner of Spence.
Challenges and Projects
Both copper operations reduced production in the first quarter of 2026 compared with the same period in 2025 and are advancing projects aimed at improving performance.
Spence is currently in the design, prefeasibility and basic engineering stages of a US$600 million project to expand its concentrator, and address challenges related to the complexity and variability of the ore being mined, which have reduced recovery rates.
The initiative contemplates incorporating a new flotation circuit to mitigate these effects. "We plan to invest in improved flotation cells, which are expected to allow for superior processing and recovery, with a possible final investment decision (FID) in the first half of fiscal year 2027," BHP commented in its 1Q26 operational report.
Last year, Spence produced 254.795t of fine copper.
Sierra Gorda, meanwhile, has a project in the pipeline aimed at processing the oxide ore that is currently stored separately for subsequent heap leaching.
In 2025, Sierra Gorda recorded production of 157.900t of copper in concentrate and 9 million pounds of molybdenum in concentrate.
The oxide ore processing and copper production project at an SX-EW plant would make it possible to produce 30,000t/y of copper cathodes over a useful life of 10 years.
In Sierra Gorda, the brownfield project to upgrade the tailings storage facility and related installations, worth US$400mn, is also underway, and an initiative of around US$700mn is being evaluated that would make it possible to carry out the expansion of the fourth grinding line.
"Collaboration between peers generates value because it reduces infrastructure requirements and lowers the footprint of projects and operations. This makes them more environmentally friendly and often allows cost reductions that make business cases viable," said Marcelo Henríquez, vice president of mining at Ausenco Chile, to BNamericas.
(The original version of this content was written in Spanish)
By Alexander Villegas and Marco Aquino June 10, 2026 5:01 PM GMT
Peruvian presidential candidate Roberto Sanchez speaks to the media as vote counting continues in the presidential runoff between Sanchez and Keiko Fujimori in Lima, Peru, June 10, 2026. REUTERS
Summary
LIMA, June 10 (Reuters) - The count to determine Peru's next president slowed and narrowed again as it entered its fourth day on Wednesday with the race still up in the air and likely to be decided by a lengthy legal battle over contested ballots.
With most of the domestic ballots already counted, conservative Keiko Fujimori narrowed leftist Roberto Sanchez's lead with an influx of votes from outside the country.
Sanchez took the lead on Monday, boosted by rural votes, and was up by as much as 50,000 before Fujimori began cutting into his lead on Tuesday. Sanchez now leads by 50.025% to Fujimori's 49.975% with Peru's electoral ONPE authority reporting 97.90% of the votes tallied.
Only about 10% of the polling stations left to be counted are from within Peru, while the remaining are from abroad. The foreign vote has largely fallen in Fujimori's favor, where she currently leads with about 63%.
But all those votes represent just a fifth of the remaining 2.1% of pending polling stations yet to be tallied. The remaining 80% are contested ballots that will go to judicial review.
Omar Awapara, secretary general of local election-monitoring group Transparencia, said due to how close the race is, it's likely the winner will be decided during a review by Peru's Special Electoral Jury.
"We'll get to a point when the difference between the candidates is greater than the (contested) votes left to be counted, and then it will be clearer," Awapara said, adding that there are roughly 400,000 votes in the contested polling stations.
"There are still a lot of votes left to be counted that can sway things one way or the other," Awapara said, adding that the whole process could take a few weeks before a winner is determined.
Both candidates have repeatedly called for patience and have avoided making definitive statements before the full vote is counted. But Sanchez, who led the Ipsos quick count on Sunday that accurately predicted previous races, has begun to harden his tone on the count.
"Democracy must be defended," Sanchez told reporters on Wednesday. "We have requested a meeting (with international observers) to exchange views on all these strange, unusual, and questionable developments that are developing."
Observers for the Organization of American States and the European Union said on Wednesday that the vote had been carried out normally and a final count was necessary due to the race's slim margin.
MARKET RESPONSE
Markets largely settled earlier this week following a sharp selloff on Friday after Sanchez, who has vowed vast economic reforms, rose in the polls. Peru's main stock index closed up 0.68% on Wednesday while the sol currency was down 0.53% against the dollar to 3.40.
"Markets are banking on Fujimori getting over the line thanks to expatriate votes from abroad, which tend to lean conservative," said Eileen Gavin, principal Americas analyst at risk intelligence company Verisk Maplecroft.
"Markets are also assuming that regardless of who wins, the more conservative hue of the lower house and newly returning Senate will act as a restraint on any populist executive impulses."
