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Chevron and US refiners' stocks surge after Trump's move towards Venezuela oil
Investors bet on President Donald Trump's decision to take action against Venezuela's government, believing that it would give American companies greater access the world's largest oil reserve. Shares of Chevron - the only U.S.'major' currently operating in Venezuelan oil fields - climbed 7.3%. Meanwhile, refiners Phillips 66 and Marathon Petroleum, Valero Energy, PBF Energy, and Valero Energy all saw gains between 5% to 16%. After President Nicolas Maduro was arrested, Trump stated that the U.S. required "total" access to Venezuela's vast reserves of oil. This heightened expectations in Washington regarding the possibility of easing restrictions on Venezuelan crude exports. Trump stated on Saturday that he would have the largest oil companies in the world spend billions to fix infrastructure and oil infrastructure which are badly damaged. In the 1970s Venezuela produced as much as 3.5 millions?barrels of oil per day, which was more than 7% global output. After years of sanctions and underinvestment, production fell below 2 million barrels per day in the 2010s. Last year, it averaged around 1.1 million barrels per day, or about 1% of global supplies. Venezuelan crude oil is a heavy sour, with a high sulfur content. It can be used to produce diesel and heavier fuels. However, the margins are lower than other grades, especially those from the Middle East. Ahmad Assiri is a research strategist for Pepperstone. He said, "This type crude oil aligns well with the configuration of U.S. Gulf Coast refining plants which have historically been designed to process this grade." Chevron is already present in Venezuela, under a U.S. waiver. This has allowed it to be a beneficiary of any shifts in policy. Refiners will also benefit from the increased availability of heavy oil closer to their home. Analysts cautioned, however, that a meaningful recovery of Venezuelan oil production will likely take some time due to political uncertainty, infrastructure decay, and years underinvestment. (Reporting by Arunima Kumar in Bengaluru; Editing by Maju Samuel)
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Oil prices fall as a well-supplied market ignores Venezuelan upheaval
Oil prices fell on Monday, as global supplies were plentiful and offset concerns about the impact of U.S. capture President Nicolas Maduro in Venezuela, the country with the largest global oil reserves. Brent crude futures fell 23 cents or 0.4% to $60.52 a barrel at 0940 GMT. U.S. West Texas Intermediate was 21 cents or 0.4% lower at $57.11 a 'barrel. Investors reacted to the Venezuela situation, an OPEC country whose crude exports have been subject to a U.S. ban, and assessed its potential impact on the oil supply. Donald Trump, the U.S. president, said that Washington would take over the country after Maduro's arrest in a New York jail on Sunday. He also stated that the embargo was still in effect. Analysts said that in a market with abundant oil supplies, any further disruption to Venezuela's exports will have little immediate effect on prices. The oil production in Venezuela has dropped in recent decades due to mismanagement, a lack in foreign investment and the nationalisation of the oil industry in Venezuela in 2000. The average output was 1.1 million barrels per day (bpd) last year. This is just 1% global production. Kazuhiko Fuku, a consulting fellow with Japan's Research Institute of Economy, Trade and Industry, said that U.S. strike action had not affected the South American nation's oil industry. Fuji stated that "even if Venezuelan imports were temporarily interrupted, more than 80% of them would still be going to China, who has accumulated ample reserves." Venezuela's acting President offered to work with the U.S. on Sunday. SEB analysts said that this would reduce the risk of an extended embargo against Venezuelan oil exports, as oil could flow freely out from Venezuela within a short time. Trump suggested that Mexico and Colombia could also face military action for not reducing the flow of illegal drugs. Analysts also watch Iran's retaliation after Trump threatened to intervene on Friday in a crackdown of protests in the OPEC-producing country. The Organization of the Petroleum Exporting Countries (OPEC) and its allies also decided to keep their production on Sunday.
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Conflict between the US and Venezuela has pushed safe-haven gold to a one-week-high.
Gold prices surged to a?more? than 2% gain and an all-time high of one week on Monday as the?geopolitical?turmoil sparked by the U.S. arrest of Venezuelan president Nicolas Maduro caused a flight for safety. Gold spot rose 2.4%, to $4433.29 per ounce at 0942 GMT. This is its highest level since December 29. It had previously reached a record of $4,549.71 an ounce on December 26. U.S. Gold Futures for February Delivery gained 2.6%, to $4443.70?an ounce. The escalation between the U.S. and Venezuela over the weekend has benefited gold. The escalation has boosted demand for "the safe-haven metal" as it increases the uncertainty that market participants already face, said Zain Vawda. Analyst at MarketPulse. Donald Trump, the U.S. president, told reporters that he would order another strike against Venezuela if it did not 'cooperate with U.S. efforts' to open its oil industry and stop drug trafficking. He also suggested that Mexico and Colombia could be subject to military action if the do not reduce illicit drug flow. Vawda said that the immediate remarks made by the Trump administration about Mexico following the Venezuela operation have left market participants wondering what future operations will be in Latin America. This should keep demand for gold high in the near-term. Bullion rose by 64% in 2013, the largest annual increase since 1979, driven by Federal Reserve rate reductions, geopolitical tensions, central bank purchases and increasing holdings of exchange-traded fund. The markets will be looking for "further clues" on the central bank's monetary policy in this year, from Friday's non-farm payrolls. Investors expect that the U.S. will cut interest rates at least twice this year. Spot silver, another precious metal, rose 4.9% to $75.18 an ounce from a record high of $83.62 per ounce on December 29. Silver prices jumped by 147% in the last year, mainly due to its status as a critical mineral for the United States, persistent supply shortages, and increasing investor and industrial demand. Spot platinum rose 3.5%, to $2,218.50 per ounce. It had reached a record of $2,478.50 on Monday. Palladium rose by 2.1%, to $1,672.93.
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BlueScope Steel receives $8.8 billion offer from SGH and Steel Dynamics
BlueScope Steel, an Australian steelmaker, said Monday that it received a preliminary?takeover bid in December from a consortium consisting of SGH?and U.S. based Steel Dynamics. The offer valued the steelmaker at $8.78 billion (?A$13.15?billion). SGH Ltd, a Sydney-listed industrial conglomerate and Steel Dynamics, a Nasdaq listed company, made a cash offer of A$30 per share on December 12. This represents a premium over BlueScope’s closing price on December 11 and a premium exceeding 22.7% above its Monday close. SGH, owned by Australian billionaire Kerry Stokes, would acquire all?BlueScope shares and sell its North American business to Steel Dynamics. BlueScope’s board is evaluating and considering the latest takeover offer, the steelmaker stated in an Exchange filing Late on Monday SGH and Steel Dynamics didn't immediately respond to requests for comment. AustralianSuper, Australia's largest pension fund, and BlueScope, its biggest shareholder, with a 12.5% stake, did not reply outside of business hours. BlueScope revealed that it had rejected three unsolicited takeover offers, including two in the late 2024 period from a Steel Dynamics-led consortium. The Steel Dynamics consortium?had initially offered A$27.50 per share and then A$29.00 in late 2024. Both proposals would have led to Steel Dynamics owning BlueScope North American businesses. Steel Dynamics' third proposal, made in early 2025, would have acquired BlueScope and retained its North American operations. The remaining assets were then distributed to BlueScope's shareholders. The North American operations were valued at A$24 per share and the other assets at A$9 per share. The report said that "these?approaches" were rejected because they undervalued BlueScope's future prospects and presented significant execution risks in relation to regulatory outcomes.
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After the Venezuelan shock, European stocks reach record highs led by defense shares
Investors piled into stocks in the defence industry on Monday after U.S. strikes on Venezuela prompted fresh geopolitical worries. After a holiday hiatus, the advance highlights expectations for structurally higher defense expenditures despite recent weakness in stocks of the sector driven by speculation about a possible ceasefire between Russia Ukraine. The pan-European STOXX 600 rose as much as 0.6% to 599.65. This is a new record high. The defense index rose by 3.3%, reaching its highest level for nearly three months. The technology and basic resources sectors also grew by 2.3% and 2.0% respectively. The German stock index also reached a record high. It was up 1% at the end of last year, and defense manufacturer Rheinmetall led with a gain of 7%. The European energy index fell 0.2% due to lower oil prices. Global supplies are sufficient, reducing concerns over disruptions caused by the U.S. attack on Venezuela. capture President Nicolas Maduro. "Venezuelan oil supply is unlikely to have a significant impact on global energy markets in the near future." Even with optimistic assumptions, it would take years to restore the country's oil sector, said Landon Derentz. He is vice president for energy and infrastructure of Atlantic Council Global Energy Center. Investors continue to monitor the fallout of the strikes. On Saturday, President Donald Trump announced that he would temporarily place Venezuela under American control. A RATE CUT IN THE SPOTLIGHT Investors also focus on central banks. They watch incoming data to get clues about how quickly rates could be cut. Goldman Sachs stated that it expects 2026 to be an improved year for the Euro Area economy than 2025, given prospects for cyclical improvements. "Further interest rate cuts are possible, but they would need a clear catalyst to do so. This could be a material decline in activity or an inflation that is lower than expected." Glencore, Rio Tinto, and Anglo American?also benefited from the higher copper price. ASML shares, the largest supplier of computer chips in the world, increased by 3.2%. Analysts at brokerage Bernstein upgraded their stock from "market perform" to "outperform", and increased the price target to 1,300 euros, from 800 euros. (Reporting and editing by Mrigank Dahniwala, Ronojoy Mazumdar and Niket Nishant from Bengaluru)
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Investors assess Venezuela's upheaval by assessing the oil price, stocks and bonds.
On Monday, oil prices fell and bonds yields increased as investors assessed the possible repercussions from the U.S. Capture of Venezuelan president Nicolas Maduro. STOXX, a benchmark index for Europe's largest companies, rose 0.5%. MSCI's broadest Asia-Pacific share index outside Japan climbed 1.3% to a new record high. U.S. Futures like S&P 500 e-minis also gained 0.2% before a week packed with economic data. U.S. president Donald Trump announced that after the events of the weekend in Venezuela, he would temporarily take control of the South American country. He also said that he might order another strike "if Venezuela doesn't cooperate" with U.S. efforts for it to open its oil industry and end drug trafficking. He also threatened to take'military action' in Colombia and Mexico. Neil Shearing, Capital Economics, said that the removal of Venezuelan president Nicolas Maduro from office by the U.S. would not have any significant economic effects on the global economy in the near future. But its geopolitical and political ramifications are sure to reverberate. The oil prices fluctuated as the OPEC+ decision to maintain output remained unchanged was countered by concerns about market disruptions due to events in Venezuela, which produces oil. Brent crude futures last fell 0.8% at $60.26 per barrel. After the U.S. strikes on Syria, new concerns about geopolitical risk sparked by the U.S. military strike, defence stocks led to?gains' in Europe. The index of defense shares rose by 2.7%, reaching its highest level in two months. Vasu Menon, OCBC Singapore, said: "Given that the Venezuelan events over the weekend were unexpected, it is yet to be seen if the Trump administration wants more regime changes." "Strategic calculations are taking place against a backdrop of mid-term elections, and the developments are unpredictable." This uncertainty may keep oil prices high. "A more volatile geopolitical climate may boost haven assets such as precious metals." US MILITARY MEASURES IMPLEMENT SAFE-HAVEN REQUEST Gold prices rose on Monday, with spot price up 2.33% to $4,430 per ounce. However, they are still below the record high set last year of $4,549.71. The yield on Germany's 10-year Bund, the benchmark for the eurozone, was also essentially unchanged at 2.893%. It had risen by 3 basis points in the previous week. The yield on U.S. 10 year?Treasury Bonds held steady at 4,173%. The U.S. Dollar Index, which measures dollar strength against six different currencies, rose 0.13% to 98.685 at the end of last day, extending recent gains for a sixth straight day. The dollar was unchanged against the yen at 156.79yen. Kazuo Ueda, Governor of the Bank of Japan, said that after increasing rates by 25 basis points last month to 0.75%, they will continue to do so if economic and prices developments are in line with their forecast. Bitcoin rose 1.2% to $92,327.40. Ether was up 0.4% to $3,154.62. (Reporting and editing by David Gooding, Gregor Stuart Hunter, and Lawrence White)
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Venezuela's defaulted government bonds soar after US capture Maduro
Venezuela's defaulted government bonds surged Monday after the surprise capture of President Nicolas Maduro by?U.S. Capture of President Nicolas Maduro. Maduro was detained and removed to the U.S. after a military "raid" in Caracas on Saturday. This has fueled expectations that this will be one of largest and most complex sovereign debt restructurings ever. Analysts predict that the bond prices issued by Petroleos de Venezuela (PDVSA), the state oil company of Venezuela, will rise up to 8 cents per dollar or 20% in early European trading. JPMorgan analysts wrote in a client note that Venezuela and PDVSA bonds had roughly doubled their price over the course of 2025. However, they still expect a strong rebound -- up to 10 points -- when Monday's trading session begins. Venezuela's sovereign debts, which defaulted in 2017, had the best performance in the world in 2018. Their price nearly doubled as U.S. president Donald Trump increased military pressure against Maduro. Data from Tradeweb showed that Monday's move pushed Venezuela's bond 2031 to almost 40 cents per dollar. Most of the other bonds in the country were up between 35 and 38 cents, and PDVSA's debt was over 6 cents more at almost 30 cents. Venezuela's government and state oil company PDVSA have defaulted on bonds that had a face-value of $60 billion. Analysts estimate that the total external debt, which includes other PDVSA obligations as well as bilateral loans, arbitration awards and other PDVSA obligations is between $150 billion and $170 billion depending on how interest accrued and court judgements are counted. Reporting by Marc Jones, Karin Strohecker and Alison Williams.
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European stocks rise as defense shares lead after Venezuela shock
European stocks rose on Monday as investors bought up defense stocks following the U.S. military strikes against Venezuela. This sparked new 'geopolitical' concerns. The STOXX 600 pan-European index was 0.3% higher by 0810 GMT. As investors return from their New Year holidays, trading volumes should normalize. Defense?index grew by 2.7%, reaching its highest level in two months. The technology and basic resources also rose by 2.1% and 2% respectively. Investors continue to monitor the impact of the 'dramatic capture of Venezuelan president Nicolas?Maduro over the weekend by U.S. forces. Donald Trump announced on Saturday that he would temporarily place Venezuela under American control. Investors also focus on central banks and watch incoming data for clues as to how quickly rates could be cut. Glencore, Rio Tinto, and Anglo American all saw their profits rise on the back of higher copper costs. ASML shares, the world's largest?supplier? of computer chip-making equipment?, increased?3.9%. Analysts at brokerage Bernstein upgraded ASML's stock from "market perform" to "outperform", and raised the price target to 1,300 euros, from 800 euros. (Reporting and editing by Mrigank Dahaniwala in Bengaluru, with Medha Singh from Bengaluru)
CEZ: ICC tribunal bans Gazprom from putting gas dispute at Russian court
An International Chamber of Commerce (ICC) tribunal has actually prohibited Russia's Gazprom from continuing with Russian legal procedures versus CEZ, the Czech energy business said.
In a statement late on Thursday, CEZ said the ICC Tribunal approved a request verifying that disputes between the companies ought to be dealt with in ICC arbitration, not in Russian courts.
In February 2023, CEZ sought settlement of around 1 billion crowns ($ 44 million) from Gazprom due to lower-than-contracted gas materials in 2022, in the wake of Russia's intrusion of Ukraine.
The Kremlin-controlled energy giant Gazprom last month submitted lawsuits against CEZ and others as it intended to move lawsuit to Russia from international arbitration.
CEZ said in its declaration that Gazprom was bound by an arbitration provision agreed with CEZ under which disputes related to gas materials would be settled before the ICC. It had actually used for an interim procedure in this instance, which was offered.
The Tribunal gave our request, verifying that disagreements between the companies ought to be solved in ICC arbitration, not in front of Russian courts, CEZ stated.
Gazprom did not instantly respond to a request for comment.
On Wednesday, a Russian court ruling prohibited Austrian energy company OMV Gas Marketing and Trading GmbH from pursuing arbitration procedures in Stockholm versus Gazprom's. exporting arm.
The court threatened to great OMV 575.2 million euros. OMV. stated it considered the Russian legal procedures to be. illegitimate.
The Czech Republic was almost totally based on. Russian gas products, mostly through the Nord Stream pipeline. and Germany, until 2022 when Russia reduced shipments as. relations with the West degraded greatly. It has actually replaced. materials with pipeline and LNG gas from other sources.
(source: Reuters)