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Trump will speed up the approval of permits for deep sea mining in international waters
The Trump administration will push ahead with its effort on Wednesday to encourage U.S. deep sea exploration by speeding up?permitting companies that are hunting for vital minerals in international waters. This move is likely to raise environmental and legal concerns. This effort could 'help?spark?a U.S. led scramble to find resources on the deep seabed, before global standards for the relatively new techniques of mining are in place. The National Oceanic and Atmospheric Administration has finalized a rule that follows an executive order signed by U.S. president Donald Trump. This executive order was intended to bolster the deep-sea?mining?industry in a bid to counter China's control over critical metals. According to a government press release, the U.S. officials will consolidate licensing and permits into a single, ostensibly faster review. The Metals Company, a Canadian mining company, began the process of obtaining such exploration licenses and permits last year. This was a step forward in its bid to be the first to receive approval for developing deep-sea minerals. Some parts of the Pacific Ocean, and elsewhere, are believed to have large amounts of polymetallic nodules, which are potato-shaped rocks filled with building blocks for electric vehicles and electronic devices, such as nickel, cobalt, and copper. There are still questions about the future of regulation in the industry. Trump's executive order instructed his administration to speed up mining permits issued under the Deep Oceanbed Hard Minerals Resources Act?of 1980, and to set up a process to issue permits along the U.S. Outer Continental Shelf. Since years, the International Seabed Authority (created by the UN Convention on the Law of the Sea which the U.S. does not have ratified) has been examining standards for deep-sea mines in international waters. It hasn't formalized the standards because of disagreements over the acceptable levels for dust, noise and any other factors from this practice. Companies are lining up for U.S. waters to mine. Supporters of deep-sea mining have argued that the practice will reduce the need for large land-based mining operations, which are not always popular with the host communities. Environmental groups have demanded that the activities be banned because they warn that industrial operations at the ocean's bottom could lead to irreversible biodiversity losses. Trevor Hunnicutt, Thomas Derpinghaus and Trevor Hunnicutt report.
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Sources say that India's Reliance will buy Russian oil compliant with sanctions in February and march.
Four sources with knowledge of the matter have confirmed that India's Reliance industries Ltd, the operator of the largest refinery in the world, will'receive' sanctions-compliant Russian crude oil between February and March, after a one month pause. Reliance received its last shipment of Russian crude in December, after it secured a U.S. concession allowing it to extend the deadline for ending business with Rosneft (a Russian oil company sanctioned by the U.S. government) beyond November 21. Sources said that Reliance, like other Indian refiners will purchase Russian oil from non sanctioned sellers. They did not elaborate on how many cargoes the refiner had booked for February and March. The private refinery has not yet confirmed if it will continue to purchase Russian oil after March. Reliance didn't respond to an email asking for a comment. REFINERS BOOST MIDDLE-EAST CRUDE IMPORTS Sources said that despite Reliance's return to India, India's total Russian oil imports will?remain subdued throughout February and March. Reliance imported Russian crude as part of a long-term contract with Rosneft. The agreement was for 500,000 barrels a day (bpd), for its 1.4million bpd Jamnagar complex in Gujarat. The European Union announced that it would not accept fuel produced by refineries which received or processed Russian oil for 60 days before the date of the bill of lading. Reliance said that it would process cargoes arriving after November 20,?at the 660,000 barrels-per-day plant in India, which allows it to continue to sell fuels to the EU through its 704,000 barrels-per-day export-oriented refinery. India's refiners, who became the largest buyers of Russian seaborne crude after a war broke out in Ukraine in 2022, have re-calibrated their crude import strategies and are increasing Middle Eastern purchases, as they move away from Russia. Srinivas T., Chief Operating Officer, Refinery and Marketing, Reliance, stated last week that "we have faced instances when sanctions were imposed suddenly and had to cutback." He said that Reliance had increased its purchases of oil from other national companies in advance to avoid disruptions on the spot market. (Reporting and editing by Emelia Sithole Matarise, journalists in Moscow)
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IEA: World oil market to experience significant surplus in the first quarter
International Energy Agency announced on Wednesday that the global oil market will be in a deep surplus by the first quarter 2026. This is because the geopolitical risks of disruption have been offset so far by the excess supply. In its monthly oil report, the IEA, a body that advises industrialised 'countries', predicted global oil supply will exceed demand by 4,25 million barrels a day in the first three months. This surplus would represent 4% of global demand, which is higher than previous predictions. Since the beginning of the year, oil prices have increased by about 6% as geopolitical concerns and the possibility of a disruption in the oil market prompted buyers. Brent crude oil, the global benchmark, was trading at $65.02 on Wednesday at 1142 GMT. This is up 10 cents from yesterday. The U.S. captured Venezuelan president Nicolas Maduro in the beginning of the month, and asked oil companies to invest to boost production in Venezuela. However, in the short term supplies from Venezuela have been disrupted. The threat of a possible U.S. strike on Iran has also led to the possibility of reduced supplies. Drone?attacks, technical issues and other factors have affected production in Kazakhstan. The IEA stated that "barring any disruptions in supplies from Iran or Venezuela, as well as further cuts by other producers, a substantial surplus will likely reappear in the first quarter of 2026." For now, the bloated accounts provide some comfort to participants in the market and have kept prices under control. OPEC+ HAS?PAUSED AFTER A SERIES of Supply Hikes The main reason why the supply has risen faster than the demand is because OPEC+ (Organisation of Petroleum Exporting Countries, plus Russia, and other allies) began increasing output in April 2025, after years of cutting. Other producers such as the U.S.A., Guyana and Brazil have also increased their production. OPEC+, however, has paused their output increases for the first quarter 2026. The IEA released its latest figures for the year that indicated an implied surplus of 3,69 million bpd. This is a decrease from the 3.84 million bpd reported in the report last month. The IEA's latest figures on Wednesday showed that the market is expected to have an implied surplus of 3.69 million bpd for the entire year. This was a downward revision from the previous report last month, which had forecast a surplus of 3.84 million bpd. The IEA stated that it was too early to determine the full impact of the recent geopolitical events on the 'oil market. However, the U.S. ban on Venezuelan oil shipments from December until early January had reduced exports by about 580,000 bpd. Refinery Maintenance Season Adds to Surplus As global oil refiners are planning planned shutdowns, and demand is lower, the surplus will be built up in 'the first quarter. The Paris-based IEA stated that "seasonal refinery maintenance is about to begin, reducing the demand for crude. Further reductions in crude output will be required." OPEC, the rival forecaster, predicts a faster growth in demand than IEA. They expect oil consumption to rise by 1,38 million bpd. According to a calculation, OPEC data indicates a near-balance between supply and demand by 2026. The IEA has revised up its forecast of global growth for this year to 2.5 million bpd, from 2.4 million bpd around December. It also said that around 52% will come from sources outside OPEC+.
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Import duty hikes have boosted the premiums on gold and silver in India
The gold premiums in India surpassed $100 per ounce for the first in over a decade on Wednesday, and?silver prices reached a new record high as traders priced possible curbs?on precious metal imports in order to strengthen the rupee. Bullion dealers have charged the highest premium since May 2014, up to $112 an ounce above official domestic gold prices. This includes 6% import duties and 3% sales taxes. Dealers offered discounts of up to 12 dollars last week. Silver premiums have risen to $8 an ounce. This is higher than the previous high of $5 in October. India is the world's second largest gold consumer and the biggest silver consumer. The rupee fell to a new record low of 91.7425 per dollar on Wednesday. Chanda Venkatesh is the managing director of CapsGold, a bullion dealer based in Hyderabad. The traders have increased their prices in anticipation of the price hike. Nirmala Sitharaman, Finance Minister of India is scheduled to present the Union Budget 2026/27 on February 1, 2019. Nirmala Sitharaman, Finance Minister of India will?present the Union Budget for 2026/27?on February 1. India imports most of the gold and silver it needs, and the demand has risen in recent months. This has increased the trade deficit, and put pressure on the rupee. Gold prices in the country reached a new record of 158.339 rupees for 10 grams. Silver also surged, reaching a record high of 335.521. "Traders who had short positions were forced to close them as the prices rose," said Prithviraj?Kothari, President of India Bullion and?Juwellers 'Association (IBJA). Kothari says that while jewellery demand has declined, the investment in coins and bars as well as exchange-traded fund investments have surged. "Supply is not keeping up." This shortage is causing sellers of imports to increase their prices, said Chirag Thakkar. Surendra Mehta is the secretary of IBJA. He said that the industry is worried that government could take steps to limit bank funding that jewellers use for gold and silver imported. This would also increase premiums on these metals. The Indian Ministry of Commerce and Industry has not responded to a comment request immediately. (Reporting and editing by Harikrishnan Nair; Additional reporting by Aftab Ahmad; Reporting by Rajendra J. Jadhav)
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Saudi Humain receives up to $1,2 billion to expand AI infrastructure
Saudi Arabia's National Infrastructure Fund and Humain - the artificial intelligence company of the Kingdom - announced on Wednesday that they had reached a financing deal of up to $1.2 billion. The agreement is intended to'support the expansion' of AI and digital technology in the country. According to a press release, the agreement sets out non-binding terms of financing for the development up to 250 Megawatts of AI data centre capacity to support Humain’s customers. It was announced in Davos, Switzerland. As part of an 'overall effort' to diversify economic activity and income sources away from hydrocarbons, the world's largest oil exporter wants to speed up its AI development in order to capitalize on the massive?demand? for computing power. Humain, which was established last year, and is owned by the Public Investment Fund (PIF), will lead efforts in this direction. Humain has secured several agreements, including with Elon Musk’s xAI or Blackstone-backed AirTrunk to build data centres in the country. It is aiming for a 6 gigawatt capacity by 2034. Infra - part of Saudi Arabia’s National Development Fund - and Humain have also agreed to jointly explore the possibility of a data centre AI investment platform. This will help local and global institutional investors to support Humain’s AI strategy.
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Indian refiners change oil strategy, trim Russian purchases and focus on the Middle East
Indian refiners have redrawn their crude import strategies in order to move away from top supplier Russia, and increase imports from the Middle East. This could?help New Delhi to clinch a deal with the United States for lower tariffs. India became the largest buyer of discounted Russian crude oil after the outbreak of the Ukraine war in 2022. However, the trade was met with a backlash by Western nations who targeted Russia's energy industry with sanctions. Middle East producers are keeping global markets well-supplied with the help of higher production quotas set by the Organization of the Petroleum Exporting Countries. This has a softer impact on the prices. INDIA REFINERS CUT BACK RUSSIAN BUYS Three sources in the refining industry said that Indian refiners had begun to reduce their Russian oil purchases after a discussion at a government-sponsored meeting aimed at accelerating a U.S. India trade agreement. Sources told us this month that the Oil Ministry's Petroleum Planning and Analysis Cell collects 'weekly' data on refiners buying U.S. and Russian crude. Sources who requested anonymity said that the state refiner Bharat Oil?Corp has awarded Trafigura one-year tenders for the purchase of Iraqi Basrah crude and Omani crude. It is also in the market to purchase Murban oil, which comes from the United Arab Emirates, under another tender. Two traders said that Trafigura would supply four cargoes per quarter of Oman crude at a price 75 cents below Dubai's quotes, and one parcel of Basrah Medium for a 40-cents discount on the official selling price of this grade. BPCL, as well as the Indian oil ministry, did not respond to comments. DOUBLING IMPORT TARIFFS? A PUNISHMENT for RUSSIA BUYS Last year, the United States, which was already trying to reduce its trade deficit with India doubled import tariffs on Indian goods by 50% to punish them for their heavy purchases of Russian crude oil. Hindustan Petroleum and Mangalore Refinery & Petrochemicals, as well as private refiners HPCL-Mittal Energy Ltd. have stopped purchasing Russian oil. Trade data shows that India's Russian imports in December fell to their lowest level in two years, while OPEC imports reached an 11-month peak. Indian refiners increased their purchases in regions like Africa and South America, as well as the Middle East. Indian refiners also increased purchases of U.S. crude oil in order to replace Russian oil, and reduce the trade deficit between Washington and India. They are also on the lookout for Venezuelan oil.
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Indian refiners change oil strategy, trim Russian purchases and focus on the Middle East
Indian refiners are changing their crude import strategies in order to move away from Russia, the top supplier of crude oil. They will instead 'boost' imports from the Middle East. This could help New Delhi clinch a deal with the United States for lower tariffs. India was the largest buyer of discounted Russian crude oil after the outbreak of the Ukraine war in 2022. However, the trade brought backlash from Western nations who targeted Russia's energy industry with sanctions because they claimed that oil revenues helped it fund the conflict. As Middle?East producers keep global markets well supplied, prices are being lowered. INDIA REFINERS CUT BACK RUSSIAN BUYS Three sources in the refining industry said that Indian refiners are reducing their Russian oil purchases after discussions at a 'government meeting' to accelerate a U.S. India trade deal. Sources told us this month that the Petroleum Planning and Analysis Cell of the oil ministry collects weekly data on refiners' purchases from Russia and U.S. Crude. Sources who requested anonymity said that the state refiner Bharat Oil Corp. has awarded Trafigura a one-year contract to purchase Iraqi Basrah crude and Omani crude. It is also in the market for Murban oil coming from the United Arab Emirates. Two traders said that Trafigura would supply four cargoes per quarter of Oman crude at 75 cents below Dubai's quotes, and one parcel of Basrah Medium for a discount of 40 cents per barrel compared to the official price of this grade. BPCL, as well as the Indian oil ministry, did not respond to comments. DOUBLING IMPORT TARIFFS - A 'PUNISHMENT TO RUSSIA BUYERS Last year, the United States doubled its import tariffs on Indian goods from 25% to 50% to punish India for buying Russian oil. Hindustan Petroleum and Mangalore Refinery & Petrochemicals Ltd, as well as private refiners HPCL-Mittal Energy Ltd, have already stopped purchasing Russian oil. Trade data shows that India's Russian imports of oil fell to their lowest level in two years during December, and OPEC's share in imports reached an 11-month peak. Indian refiners are increasing their purchases of goods from Africa and South America, as well as the Middle East. Indian refiners also increased their purchases of U.S. crude oil in order to replace some Russian oil, and also to reduce the trade deficit between Washington and India. They are also looking for Venezuelan oil.
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Europol busts Europe's largest drug network in Poland, which runs 20 illegal laboratories
Polish prosecutors announced on Wednesday that European investigators had uncovered a synthetic drugs international network operated from Poland. They have seized over 9.3 tonnes of narcotics as well as arrested more than 100 suspects. Operation 'Synthetic Drugs in More Than 20 Illegal Laboratories' targeted a criminal gang accused of importing chemical pre-cursors from China and India, and manufacturing them in over 20 illegal laboratories for distribution throughout the European Union. The prosecutors said that the 'group' operated a complex supply chain. They imported large quantities of chemicals legally, which were then repackaged to be sent illegally to drug labs in Poland and Western Europe. Poland was the logistical hub. The video released by the Polish police shows armed officers raiding suspects' houses and huge stocks of chemicals in plastic containers as well as distillation equipment. In 2022, Polish anti-narcotics officers launched a multi-country investigation. The authorities in Poland, Germany and the Netherlands seized over 9.3 tonnes of narcotics as well as vast quantities of chemical precursors. The prosecutor's office has not provided an estimate on the value of the drugs seized. Prosecutors said that Europol, EU's agency to combat international and organized crime, has enabled intelligence sharing and coordinated police actions across border. (Reporting by Barbara Erling Editing by Alexandra Hudson)
Geopolitical strain dogs European mid-term sovereign outlook, Scope says
Scope Ratings stated?on Wednesday that a challenging geopolitical climate compounded with unfavourable political crosswinds in Europe weighs on the'region's?medium-term sovereign credit prospects, even though the continent continues to demonstrate economic and fiscal resilience.
Alvise Lennkh Yunus, Scope Ratings' head of sovereign and?public?sector, said that the U.S. - Europe Greenland Crisis and the reemergence of uncertainty in EU-U.S. trading relations were critical to?the European sovereign outlook.
Lennkh Yunus stated that the main threat to Europe is its security, fiscal and energy position, and EU cohesion rather than an immediate large economic hit. He added that any direct economic impact should be manageable.
Lennkh Yunus, Scope's CEO, said that the?baseline is a generally resilient European credit outlook with "rating convergence" and "cautious optimism about growth and fiscal position".
EU ASSUMES it can rely on the US
Eiko Sievert is the executive director of Scope Ratings. She said: "The White House's destabilizing?approach towards its traditional allies"
Sievert said that a large and coordinated sale of U.S. assets was unlikely even though European nations, along with Japan and China, held large shares?of outstanding U.S. Treasury bonds.
The report warned that such a scenario would trigger fire sales, affect investors' portfolios, and destabilise global financial systems. (Reporting and Editing by Madeline Chambers and Rene Wagner)
(source: Reuters)