downstream

The deal is set to hand Gunvor an extensive portfolio of upstream and downstream assets, including major projects in Egypt, Azerbaijan and Uzbekistan.

The deal will give Compass a lot of leverage, and could have downstream effects in terms of catalyzing additional consolidation as other brokerages aim to grow their share inorganically.

But Fernandes de Sa said this was mostly extraction, and none of these companies were developing more sophisticated downstream operations in Brazil, such as mineral separation or magnet manufacturing.

"We look for a more coordinated policy push that addresses overcapacity and strengthens downstream demand," Sarah Tan, economist at Moody's Analytics, told AFP.

"Although the current warm conditions are located in the north Pacific, these can generate wave motions in the atmosphere that can alter our weather downstream into the north Atlantic and into Europe," said Prof Maycock.