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Venezuela and US inventories draw up oil prices, which boosts the price of crude.
Oil prices rose slightly on Thursday after two days of declines. A larger-than expected drawdown in U.S. crude stocks provided an impetus for investors to purchase futures as they monitored developments in Venezuela. Brent crude futures rose 38 cents or 0.6% to $60.34 per barrel at 0104 GMT, while U.S. West Texas Intermediate Crude was up 37 cents or 0.7%, and $56.36 per barrel. Morgan Stanley analysts, for example, estimate that there will be a global surplus of up to 3 million barrels a day in the first half 2026. Mitsuru Muraishi is an analyst with Fujitomi Securities. Pullback buying has pushed prices slightly higher but persistent concerns about oversupply are limiting the upward momentum. The downward trend will likely continue while markets watch developments in Venezuela," he said. He forecast that WTI would?likely drop below $54. The Energy Information Administration reported that U.S. crude stock levels dropped by 3.8m barrels, to 419.1m barrels for the week ending January 2. This was in contrast with analyst expectations in a survey of a 447,000 barrel increase. Top U.S. officials stated on Wednesday that the U.S. must control Venezuela's oil revenue and sales indefinitely in order to stabilize its economy, rebuild it's oil sector, and ensure that it acts in America’s interest. Four sources familiar with the negotiations said that the U.S. Government and oil producer Chevron are in discussions to extend a "key license" to operate in Venezuela, so the company can increase its crude exports into its refineries as well as sell to other buyers. As part of President Donald Trump’s aggressive push to dictate the oil flows in Americas and force Venezuela's socialist regime to become an ally, the U.S. seized on Wednesday two Venezuela-linked tankers, including one that was sailing under the Russian flag. Washington announced on Tuesday a deal to get up to $2 billion in Venezuelan crude. Venezuela will "turn over" 30 to 50 million barrels worth of "sanctioned oil" to the U.S. according to a tweet by Trump on Tuesday. Sources said that the deal could initially require cargoes bound for China to be rerouted. The Chinese refineries that import most of Venezuela's oil could turn to Iranian crude to cover the shortfall. (Reporting and editing by Christian Schmollinger; Yuka Obayashi)
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Australia shares are up as healthcare and banking gains outweigh mining losses
Australian shares were up slightly on Thursday as gains in healthcare and banking stocks offset a fall in mining stocks. This comes a day after mixed data about inflation left the central banks' monetary policy uncertain. S&P/ASX 200 Index?edged?up?0.1% to 8,707.50 at 0012 GMT. The benchmark index rose by 0.2% on Tuesday. The Reserve Bank of Australia has set a target range of 2%-3% for core inflation. However, the data released on Wednesday shows that consumer prices increased 3.4% from a month earlier in November. This is slower than the alarmingly high rate of 3.8% seen in October. RBA already warned it would raise its cash rate in the event of inflation not cooling down sufficiently. Markets imply that there is a 31% chance for the RBA to increase its rate by a quarter-point at its February '3 meeting. The RBA will make its next policy decision based on the quarterly inflation figures, which are due in a few weeks. After three sessions of losses, the financial stocks on the bourse rose by 0.3%. The "Big Four' banks gained between 0.2% and 1.1 percent. The Nasdaq tech index rose 1.6% while the healthcare stocks rose 1.5%. Investors returned to artificial intelligence stocks as they re-invested in Nasdaq-heavy stocks. Consumer discretionary stocks gained 0.3%, despite a drop in oil prices overnight. While copper prices plunged sharply from their 'all-time peak, and nickel fell from its 19-month high, the miners dropped 0.3% despite having recorded record closing highs in three consecutive sessions. Rio Tinto Group and BHP Group both fell by 0.4%. Gold stocks fell by 0.8% after the bullion price dropped due to profit-taking, and a stronger US dollar. The benchmark S&P/NZX50 index in New Zealand fell by 0.2%, to 13,690.85 point. (Reporting by Shruti Agarwal in Bengaluru; Editing by Subhranshu Sahu)
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BlueScope Steel shares drop 2% after rejecting $9 billion takeover bid
BlueScope Steel shares were down by 2% on early Thursday trading after the company turned down an A$13.2 Billion ($8.87 Billion) takeover bid from Australian conglomerate SGH and U.S. based Steel Dynamics. BlueScope's shares were trading slightly below the A$30 per share cash offer, which indicates investors believe a deal can still be struck despite the official rejection by the board. SGH shares traded 0.7% lower on Thursday after BlueScope stated that the offer "significantly undervalued" SGH after trading closed Wednesday. Steel Dynamics shares ended Wednesday's U.S. trade 2.8% lower. Macquarie analysts predicted that the takeover fight would continue. They said the bidders were likely to change their minds. Even before the board rejected the bid, some investors had said that the price would need to be raised to win their support. The bidder received the offer at a premium of 26.8% over the closing price for BlueScope's shares on the 11th December, the day before the bid. The offer wasn't disclosed until Monday evening. BlueScope stated that it has received three bids from Steel Dynamics in the last 20 years. Its Chair Jane McAloon claimed the new offer from SGH and Steel Dynamics is an attempt to "buy the company on the cheap". SGH, owned by Australian billionaire Kerry Stokes and a growing industrial company, is planning to purchase BlueScope, while selling its North American assets, to Steel Dynamics. SGH and Steel Dynamics?did not respond to requests for comments on the bid rejection. BlueScope's board said it rejected the bid because the offer was to be adjusted for future payments of dividends and would take a very long time to finalise, which would reduce the value. The company also said that it would generate between A$400 and A$900 in additional earnings if the steel spreads?and foreign exchange rate reverted to historic average levels, from recent lower levels. Steel spreads are the difference between steel prices and input costs. They are an important measure of profitability for the industry. (1 Australian dollar = 1.4877 dollars) (Reporting and editing by Scott Murdoch, Chris Reese, Jamie Freed).
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Panama's Sinolam files a lawsuit against AES and InterEnergy for alleged anticompetitive conduct
Sinolam LNG Terminal S.A., and Sinolam Smarter Energy LNG Power Co. filed a $4 Billion lawsuit in Virginia on Wednesday against U.S. utility AES Corp. Sinolam filed a complaint in Arlington County Circuit Court accusing AES and its partner of anti-competitive behavior aimed at derailing Sinolam’s planned LNG terminal and power-generating project using gas in Colon. The lawsuit?alleges that "coercive tactic," misuse of confidential data and improper influence on regulators?to delay permits or revoke licenses?have been used. Sinolam announced that it had obtained permits, power purchase contracts and long-term customer commitments. It said the projects were part of Panama's ambitions, to expand LNG related activity after the Panama Canal expansion. The complaint claims that AES executives acted from their Virginia headquarters to slow down the permit process and press for regulatory actions that would?undermine Sinolam’s authorizations. Sinolam alleges that InterEnergy also misused the information it obtained under a nondisclosure contract to help form a joint venture, which, according to Sinolam, displaces Sinolam and its potential customers. Sinolam accuses the defendants of using political influence to gain monopoly control on LNG imports and power generation. This includes ties with?Panama’s government which owns a stake in AES's AES Panama S.R.L. AES stated that the claim was "without merit" and plans to vigorously defend itself. InterEnergy didn't immediately respond to a comment request. Reporting by Yagnoseni das in Bengaluru, Editing by Tasim Zaid
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India arrests anti-fossil energy activist
Indian officials announced on Wednesday that a global environmental activist who was working to coordinate an international treaty to phase-out fossil fuels had been detained by Indian authorities and then released as part of their investigation into the use?of foreign?funds in order to 'undermine Indian energy policy. India's Enforcement Directorate conducted a search of the home of Harjeet and Jyoti Singh, who are the founders of the environmental NGO Satat Sampada. The raid was part of an investigation into the "suspicious" foreign remittances received by the organisation to promote the so-called Fossil fuel Non-Proliferation treaty in India. Vanuatu proposed the?treaty in 2022. It aims to stop fossil fuel production and transition towards green energy. The treaty is supported by 18 developing nations, including Pakistan and Colombia. The investigation comes after COP30 'climate summit, held in Belem in Brazil. Several countries were unhappy with the final outcome, which avoided stronger plans to rein in greenhouse gas emissions or phase out fossil fuels. The Indian agency stated in a press release that "while presented as a 'climate initiative,' its adoption could expose India?to legal challenges at international fora such as the International Court of Justice. It would also severely compromise the nation's economic and energy development." In a July advisory opinion, the ICJ stated that wealthy nations are responsible for curbing climate change. Singh and Awasthi?were not immediately available to comment. Tzeporah Bernman, the founder and chairperson of the Fossil Fuel Non-Proliferation Initiative, was unable to comment on the details of the investigation but stated in a press release that the treaty is meant to support India, not undermine it. The proposal aims to assist developing countries, including India, through international cooperation, financial access, and technology transfers. She said that the goal was to promote a fair and orderly transition to renewable and accessible systems with a special focus on those in most need. (Reporting and editing by Matthew Lewis in Washington, Valerie Volcovici)
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Energy ministry reports that Russian strikes have knocked out power in southeast Ukraine
The?energy ministry reported that Russian strikes on Wednesday evening knocked out almost all power supplies in two regions in southeastern Ukraine. In a Telegram statement, the Ministry said that "as a consequence of the attack, the Dnipropetrovsk region and the Zaporizhzhia region are almost completely powerless." "Critical infrastructure operates on reserve power." In recent months, Russian attacks on Ukraine's energy system have increased. Yulia Shvyrydenko, Ukraine's prime minister, said that impending snowfalls as well as temperatures dropping overnight to minus 20° Celsius (minus four degrees Fahrenheit), would likely cause power and heating problems. Svyrydenko, a Telegram user, wrote: "Ukraine’s energy system is constantly under attack by the enemy. Energy workers work in very difficult conditions just to provide light and heat for people." She said that "deteriorating weather conditions place additional strain on critical infrastructure." Public?broadcaster Suspilne reported that power cuts had affected the city of Dnipro where the metro stopped running and other parts in the region. The Dnipropetrovsk Regional Council's head told the broadcaster that he was unsure when the power would be restored. Oleksandr Vikul, the head of the military administration in Kryvyi Rih (the home town of President Volodymyr Zelenskiy in the region), warned residents that they should prepare for long power cuts and use generators as much as possible. Ukrainian Railways said that trains and signalling systems in both regions were switched to reserve systems, and that?stations are being operated using generators. The Zaporizhzhia regional governor Ivan Fedorov stated that the power cuts had caused air raid sirens to be unaudible. He stated that mobile phone?networks are working under emergency conditions, and urged residents to stay away from the networks. Fedorov stated that the hospitals in Zaporizhzhia are functioning normally, and that water will be restored quickly in the affected areas. (Reporting and editing by Jamie Freed; Ron Popeski)
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Venezuela's PDVSA announces that oil supply negotiations with the US are progressing
PDVSA, Venezuela's state oil company, said Wednesday that it was?progressing with negotiations with the United States regarding oil sales.?A board member of the company informed?the?U.S. Will need to purchase cargoes at the international price. Washington announced on Tuesday that it had reached a deal with Caracas for access to up $2 billion of Venezuelan crude. This is a sign the Venezuelan government has responded to President Donald Trump’s demand that they be open to U.S. companies and risk further military intervention. Trump has said that he wants Delcy Rodrguez, the interim Venezuelan president, to be installed in this week's after the U.S. The U.S. has deposed Nicolas Maduro and given "total access to the oil industry" of Venezuela. PDVSA stated?in a short statement? that the parties had been discussing?similar terms to those?in place?with foreign partners like Chevron, its main joint venture partner which controls all oil exported to the U.S. The company stated that "the process... is based strictly on commercial transactions, under terms which are legal and transparent for both parties." Wills Rangel is a PDVSA board director and union leader. He told us that the U.S. would need to purchase cargoes for Venezuelan oil at international prices. Rangel stated that "if they want to purchase it, it will be available in due course, at the current international price." "Not what (Trump's) intentions are, as though that?oil belonged to them since we supposedly owe. We owe nothing to the United States. Rangel said that Chevron is currently the only company exporting Venezuelan crude, due to a U.S. ban on the country. This has paralyzed the exports of Venezuelan oil to China, its main destination. (Reporting and Editing by Rod Nickel).
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De Beers CEO: African countries and business groups are eyeing De Beers stakes
De Beers' CEO,?Tony?Taylor, said that Anglo American is looking to sell its stake in De Beers and has received interest from business groups as well as African governments. Al Cook, CEO of De Beers said that Botswana Angola Namibia, all of which are major diamond producers, have shown an interest in purchasing equity in the company. He did not comment on the current status of the talks or who the parties were. In June, it was reported, citing reliable sources, that Anil 'Agarwal and Indian diamond groups, as well as Qatari investment funds, were among the people who had expressed a?interest in De Beers. Anglo American, the company that owns about 85% of De Beers has valued it at $4.9 billion. Cook responded that the focus was not on the identity of the new owner but rather on the alignment with the long-term strategy, which included its emphasis on "natural diamonds", partnerships with producer countries and growth in key market. Cook, De Beers' CEO, said that India is "an extremely important market." He believes that the demand for diamonds will double in India, and the market value of the precious stone should reach $16.7 billion by 2030. This week, the?group opened the fifth Forevermark Store, the largest in the world, in Mumbai. The group plans to expand its network to?25 outlets before the end of the year, and eventually to 100 stores. De Beers is banking on the rising demand for self-purchases as the global model of gifting has changed. The group will also be doubling down on the Element Six?business. Last year, it generated about $300 million of revenue by supplying synthetic wafers for data centers to use as heat conductors. The company discontinued its lab grown diamond jewellery brand Lightbox in 2013.
Oil drops after Trump says Venezuelan oil will be sent to United States
Oil prices fell on Wednesday, after U.S. president Donald Trump announced that Venezuela would "turn over" between 30 and 50 million barrels sanctioned oil from the United States.
U.S. West Texas?Intermediate Crude (WTI), fell by 78 cents or 1.37% to $56.35 per barrel at 0200 GMT. Brent crude futures dropped by 61 cents or 1% to $60.09 per barrel.
The market has weighed the expectations that global crude supply will be ample this year with the uncertainty surrounding Venezuelan crude production after the U.S. captured the country's president, Nicolas Maduro.
"This Oil will Be Sold at Market Price.?And that Money Will Be Controlled By Me, As President of the United States of America. To Ensure It Is Used For The Benefit Of The?People of Venezuela and United States!" Trump made the statement in a post on social media Tuesday.
Tina Teng said that Trump's tweet shows he prefers to increase supply over limit it. This is a concern about the global market being oversupplied.
Two sources said earlier Tuesday that the deal Caracas reached with Washington could require a first reallocation of?cargoes originally destined for China.
Venezuela is selling its Merey crude at around $22 below Brent per barrel for delivery at Venezuelan ports. This deal could be worth up to $1.9 Billion.
Chevron, PDVSA’s main joint-venture partner, controls the flow of oil under an American authorisation.
Chevron is the only company to have been able to load and ship crude oil from Venezuela without interruption in the last few weeks, despite the blockade.
Analyst at Haitong Futures, Yang An, said that Venezuela's oil exports into the United States have disrupted first the U.S. markets, and will also increase the global oversupply.
Haitong Futures stated in a recent report that complex geopolitical changes captured the attention of many in early 2018. This led to many overlooking?weaknesses in the physical crude market due to oversupply.
Haitong Futures said that Middle Eastern crude oil prices continue to decline, and have become the weakest segment of cross-regional pricing. This has dampened investor's willingness to chase gains.
Morgan Stanley analysts predicted that the oil market would reach a surplus as high as 3,000,000 barrels per day during the first half 2026. This was based on the weak growth?in the demand of last year, and the rising supply of OPEC and Non-OPEC producers.
Market sources cited American Petroleum Institute figures on Tuesday to say that U.S. crude oil inventories dropped last week, while fuel stock rose. API figures show a decline of 2.77 million barrels in U.S. crude stock.
The official U.S. Government statistics on the country’s oil inventory are due on Wednesday at 10:30 am EST (1530 GMT).
Eight analysts polled ahead of the report estimated that crude inventories increased by an average of about 500,000 barrels during the week ending January 2nd.
(source: Reuters)