The recent banking crisis will not have a knock-on effect on commodities, the chief financial officer of global commodities trader Trafigura said at the Financial Times Global Commodities Summit.
Mr Salman says traders offer banks many business opportunities, from hedging to trade finance and mergers and acquisitions. So Trafigura is entitled to a lot of products from banks, which are very supportive of our business.
Brent crude hit its lowest level since 2021 last week on fears that bank failures could trigger a global recession and cut fuel demand. However, global stock markets recovered after UBS agreed to buy Credit Suisse on Sunday.
Mr Salman does not expect banks' appetite for commodity trade finance to wane after the Credit Suisse takeover. He sees the entry of credit institutions as a major development in commodity financing markets. With the support of the new export credit agencies, which are active in commodity markets, Trafigura has managed to raise almost $5bn. In recent months, Trafigura has struck several energy and metals deals involving German and Italian export credit agencies.
