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Ukrainian Energy Minister: Power system has had its most difficult day since 2022
Ukraine's energy network on Thursday experienced its most difficult day since a widespread power outage hit the system in November - 2022. The situation is still "extremely difficult, Energy Minister???Denys?Shmyhal? said. In the nearly four-year old war, Russia has been targeting Ukraine's energy systems. But the attacks intensified recently, causing heavy damage to networks and knocking power and heat out for large swathes. The power was cut to thousands of apartment blocks in Kyiv during two nights of strikes this month. Shmyhal is also the first deputy premier and he said that the recent difficulties were due to a number of factors, including constant shelling, damage to transformers and generating equipment. He wrote: "Today was the worst day for the Ukrainian power system since November 2022's blackout." The situation is very difficult. The crews were forced to resort to emergency shutdowns." He said that the most difficult conditions were in Kyiv, its surrounding area, and in the southeastern Dnipropetrovsk Region. Shmyhal reported that 165 emergency brigades worked during the daytime in the capital. The city had just experienced its?2,000th alert of an air raid since the Kremlin's invasion in February 2022. The wintry weather made their operations more difficult, as nighttime temperatures dropped to -10 Celsius. Vitali Klitschko, the mayor of Kyiv, said that 2,600 apartment blocks were still without heat two days after last night's attacks. However 600 buildings had heating restored. He said that power cuts were still in place, even though the water supply had been fully restored. Last week, President Volodymyr Zelenskiy declared an emergency in the energy industry and asked the government to develop a plan for dealing with disruptions. After a meeting on energy, Yulia Shvyrydenko stated that the government is working to provide Kyiv's residents with generators and alternative energy sources. (Reporting and Editing by Bill Berkrot.)
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Oil drops 2% after Trump toned down his threats towards Greenland and Iran
The oil price dropped by about 2% on Thursday, reaching a new low. This was after U.S. president Donald?Trump backed down on his threats against Greenland and Iran and on positive developments that could help end Russia's war in Ukraine. Brent futures dropped $1.18 or 1.8% to settle at $64.06 per barrel. U.S. West Texas Intermediate crude (WTI), however, fell $1.26 or 2.1% to settle at $59.36, which is a new one-week low. Trump claimed that he had secured permanent U.S. access in Greenland through a deal with NATO. The head of the alliance said allies must increase their commitment to Arctic Security to counter threats from Russia and China. Diplomats say that European Union leaders will also rethink their relationship with the U.S. during an emergency summit scheduled for Thursday, after Trump's threats of tariffs, and possibly military action, to take Greenland, severely shook the confidence in the transatlantic partnership. Ole Hansen is the chief commodity analyst for Saxo Bank. He said that there has been a reduction in risk premiums due to the Greenland fiasco and also decreased Iran supply risks. Trump said that he also hoped for no further U.S. military actions in Iran but added that the U.S. will act if Iran resumes their nuclear program. Iran is the third largest crude oil producer in the Organization of Petroleum Exporting Countries, behind Saudi Arabia and Iraq. Tony Sycamore is an analyst at online broker IG. He says that with less tension in Greenland and Iran the oil price should remain around $60 a barrel. RUSSIA AND UKRAINE After talks with Trump at Davos, Ukraine's President Volodymyr Zelenskiy said that the terms of Ukraine's security guarantees had been finalized. However, the crucial issue of its war?with Russia has not yet been resolved. Trump has pressed Ukraine to secure peace following nearly four years war, despite little sign that Russia is willing to end the fighting. By increasing the amount of fuel available globally, a deal that brings peace to Ukraine and lifts sanctions against Russia, which is the third largest crude producer in terms of volume, could lower oil prices. The French Navy intercepted in the Mediterranean a Russian oil tanker suspected of being a part of a Shadow Fleet that allows Russia to export its oil despite sanctions. According to data released on Thursday, the Russian oil production fell by 0.8% last year to 10,28 million barrels of crude oil per day (bpd). This represents around a 10th of global output. Trading houses Vitol & Trafigura, a second sanctioned OPEC-member, were exporting fuel in Venezuela under a U.S. backed deal after the capture of Venezuelan president Nicolas Maduro. Drafts of a proposed law reform in Venezuela would allow foreign and domestic companies to operate oilfields independently through a new model of contract, commercialize the output, and receive sales proceeds even if they are minority partners of PDVSA. A U.S. official stated on Thursday that the Trump administration allows China to buy Venezuelan crude oil, but not at the "unfair and undercutting" prices Caracas was selling the crude before the U.S. ousted Maduro. Oil prices could be reduced by increasing oil exports from Venezuela. Forecasts for European corporate health have also been cut, which has a negative impact on oil prices. Amin Nasser is the chief executive officer of Saudi Arabia’s Aramco, which is the world’s largest oil producer. He said that global oil glut predictions were'seriously overstated' as global oil stocks have been depleted and demand continues to grow. US OIL INVENTORIES Oil futures continued to lose money on the back of a larger-than-expected increase in crude storage. Energy Information Administration in the United States (EIA), said that energy firms added more than 3.6 million barrels to storage during the last week of January. This is more than triple what analysts predicted. EIA & API released their reports one day later than normal due to Monday's Martin Luther King Jr. holiday in the U.S. Scott DiSavino reported from New York, and Anna Hirtenstein from London. Sam Li and Siyi Liu contributed additional reporting from Beijing and Singapore. Editing by Joe Bavier (with Will Dunham, Mark Potter, and David Gregorio).
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Official: US allows China to buy Venezuelan oil, but not at prices that 'undercut Maduro's days'
A U.S. official stated on Thursday that the Trump administration allows China to purchase Venezuelan crude oil, but not at the "unfair and undercutting" prices which Caracas had sold it at before the U.S. ousted President Nicolas Maduro. The official, who spoke on condition of anonymity, said that while the oil would be sold globally, the U.S. government has insisted that the majority is sold to them. The U.S. claims it will continue to control Venezuela's oil sales after seizing Maduro in January. The official stated that "thanks to President Donald Trump's successful and decisive law enforcement operation, Venezuelans will receive a fair price from China and other nations for their oil instead of a cheap, corrupt price." China has been Venezuela’s largest oil buyer for many years. The sales have helped Caracas pay off massive debts to Beijing in debt-for -oil agreements. Officials said that the administration is allowing China the opportunity to purchase oil at "fair, market prices", not at the low prices at which Maduro had sold oil to China in order to pay off debts. U.S. Energy Sec. Chris Wright stated last week that the U.S. received about $45 per barrel for Venezuelan crude oil compared to?the roughly $30 Venezuela received before Maduro was captured. Trafigura and Vitol, two trading houses, sold 11 million barrels in an initial supply deal between Venezuelan and U.S. stranded oil. This represents about a quarter of the $2 billion agreement. Sources said that Trafigura had completed its first crude oil sale in a deal to a Spanish company,?Repsol. Vitol also negotiated cargoes for U.S. refiners such as?Valero, Phillips 66, and its refinery in Italy. China's imports of Venezuelan oil are 'expected to drop in February' as fewer tanks have been able to leave since the U.S. took control of the OPEC producers' sales, traders and analyst said last week. Timothy Gardner in Washington, Nidhi verma and Matthew Lewis edited the article.
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Sources: Trafigura sells first Venezuelan crude oil under supply agreement
Trafigura, a trading house, has sold its first shipment of Venezuelan crude oil, as part of an agreement between Caracas, Venezuela, and Washington for the supply of 50 million barrels of oil. The Spanish refiner Repsol is expected to receive a shipment of this quantity. Two sources stated that the cargo should be delivered to Repsol by mid-February. Trafigura and Repsol have declined to comment. The agreement would be one of the first to sell Venezuelan oil in Europe since the United States captured Venezuela's leader at the beginning of this month, and struck an agreement with Caracas for the export of up to 50,000,000 barrels of oil. Sources in the industry said that, along with the Trafigura shipment bound for Spain and the Vitol cargo headed to Italy, the rival commodities trading house Vitol was also shipping Venezuelan oil as part of the initial agreement made with the U.S. Government. Vitol declined comment. Washington contacted Trafigura and Vitol to help facilitate the first exports of Venezuelan crude oil, which had been filling up storage tanks due to an U.S. blockade. They also agreed to provide naphtha as part of their efforts to revitalize Venezuela's oil production. Trading sources claim that Venezuelan oil has a high density, and can only be processed by a small number of European refineries. Trading sources say that Repsol, which has five refineries across Spain, is a former regular importer from Venezuela. It also 'has the capability to refine heavier barrels. This makes it one of top candidates for continuing to buy from trading firms. Repsol is also 'in the process of applying for its own U.S. license to export oil from Venezuela. An administration official stated on Thursday that while the Venezuelan oil would be sold globally, the U.S. Government has demanded the majority be sold to the United States. According to a report on Wednesday, Vitol is currently in negotiations to sell cargoes of crude oil to U.S. refiners Valero Energy & Phillips 66. Trading houses in India have also been selling Venezuelan oil to refiners. An official in the U.S. administration said that China can only buy Venezuelan oil if they do so at "fair-market prices". Reporting by Pietro Lombardi and Shariq Khan. Editing by Alex Lawler and Elaine Hardcastle. Nia Williams.
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Vitol, Trafigura accelerate Venezuelan oil sales under US-backed $2 bln supply deal
Trafigura, a trading house, sold a 'cargo' of Venezuelan oil, to a Spanish refiner. Vitol, a rival, was preparing to export Venezuelan fuel as shipments from the OPEC nation accelerated, according to oil industry sources. U.S. officials reported that Vitol, Trafigura and other companies obtained their first U.S. licensing to load and export Venezuelan crude oil earlier this month. Initial sales reached $500 million or approximately 11 million barrels last week, they said. U.S. officials said that other companies, such as U.S. giant Chevron, were waiting for Washington's exemptions from U.S. sanctions against Venezuela before expanding exports. According to industry sources and shipping data, the trading companies have taken crude cargoes, stored them at terminals located in the Caribbean and then offered the Venezuelan oil to refiners based in the U.S.A., Europe, and India. Trafigura completed its first crude oil sale this week to a customer, the Spanish company Repsol. Vitol has also negotiated cargoes for?U.S. Sources said that Vitol has negotiated cargoes to?U.S. refiners such as Phillips 66, Valero, and its own Saras refinery. Vitol and Trafigura have declined to comment. The sales indicate that the historic 50-million barrel supply deal between Caracas? and Washington is accelerating and that millions of bbls of Venezuelan crude oil are now flowing to refiners around the world after several years of not being able to buy it because of U.S. sanctions. U.S. officials claim that Venezuela received higher prices than before sanctions for the oil purchased by Vitol or Trafigura. During the sanctions period, the country was forced to offer steep discounts in order to entice buyers to risk violating U.S. restrictions regarding the facilitation of Venezuelan oil exports. Vitol & Trafigura have paid a $15 discount to Brent crude, up from the previous discount of $30 per barrel. Brent traded at $63 per barrel on Thursday. Venezuela would receive about $48 per barril compared to around $33 under sanctions. The higher price of the 50 million barrels Venezuela agreed to sell in the U.S.-backed agreement would generate an additional $750 million. FUEL OIL TO BE DEPART Two sources claim that Vitol executives instructed their business partners to inspect terminals run by the state-run PDVSA in Venezuela, including Amuay, El Palito and Amuay, in order to?load fuel oil there in the next few days. Refineries can produce fuel oil that is suitable for use in power generation. The OPEC nation produces high-sulphur residue fuel oil that it used to'sell to customers in Asia. Shipping data revealed that Vitol has another cargo of fuel due to arrive soon in Venezuela. This cargo contains naphtha which Venezuela needs to blend with its heavy crude. The crude is diluted, which makes it easier to transport and less viscous. PDVSA has not responded to a comment request. Venezuela had previously imported naphtha, but these shipments were halted in December when U.S. president Donald Trump imposed an oil blockade into and out Venezuelan waters. Venezuela has stored millions of barrels of fuel and crude oil on land and in vessels due to a U.S. blockade of oil that began in late December in an effort to put pressure on Maduro's government. Independent figures show that the PDVSA was forced to reduce production due to the increasing stocks. Production fell to 880,000 barrels a day in early January from 1,16 million bpd late November. Sources said that PDVSA sent millions of barrels, including fuel oil and residual fuel, to waste pools located in the western region of the country to avoid closing down its domestic refineries. Three sources from the company said that the PDVSA's oil production cuts will be reversed in the next few days if exports increase.
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UK court approves challenge to large data center
After campaigners received permission on Thursday to file a first-of-its-kind lawsuit against the project, Britain's approval of a hyperscale data center just?outside London is under scrutiny. The government approved plans for a 90MW Data Centre in Buckinghamshire last year after the local authority refused permission. Foxglove, a British non-profit and Global Action Plan, an environmental charity, argued that ministers had failed to take into account the climate change impact of the "vast" amount of electricity required by the data center. Since ChatGPT's release in late 2022 the global data centre demand has risen, and so have the planned projects, as investors bet on generative AI and governments increase demand for electricity to power these centres. The lawyers for the groups claim that the Ministry of Housing, Community and Local Government failed to estimate the "much greater amounts of electricity" required to power and cool computers, as opposed the office functions of the data centre. Greystoke Land - the company that is developing the land - argued that the project was 'lawfully approved' and the legal challenge shouldn’t go forward. In a letter sent to the London High Court, MHCLG officials accepted that the permission granted for the project was invalid because it was based on climate mitigation measures, which were not then?secured. The High Court gave Foxglove and the Global?Action plan the green light to challenge the decision during a hearing held on Thursday. This means that a full 'hearing' of their case will be scheduled later this year. Foxglove, Global Action Plan and others claim that theirs is the very first legal challenge in Britain to a hyperscale information centre. ($1 = 0.7449 pounds) (Reporting by Sam Tobin, Editing by Louise Heavens)
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Central African leaders call for urgent reforms to strengthen economies
Central African leaders have ordered urgent fiscal measures and monetary policies to stabilize the region's weakening economy. This includes repatriating?state assets abroad and export revenue. According to a communiqué issued following an extraordinary summit held in Brazzaville, the six leaders agreed to implement immediately the return of export revenue, giving priority to companies in the extractive industry. The officials urged governments to "pursue" and "finalize" negotiations with companies to repatriate the funds allocated for environmental restoration in areas affected by oil extraction. This step was deemed crucial for restoring liquidity to the regional banking system. The Central African Economic and Monetary Community convened the summit to address the region's slow growth, falling commodity prices, climate change and tightening financial conditions. The Bank of Central African States, central bank of Cameroon and Chad as well as the Central African Republic of Gabon, Congo and Equatorial Guinée, demanded that international oil companies place funds for environmental restoration in BEAC managed accounts, under a reform backed by the International Monetary Fund. This move was met with industry resistance. International oil companies that operate in the region allocated funds estimated between 3 trillion and 6 trillion CFA Francs ($5 to $10 billion), which are currently held by foreign banks. These funds will be used for environmental cleanup after production has ended. The leaders instructed the governments to?advance or finalise their economic and financial programs with IMF, and to align their national budgets with IMF obligations in particular on debt sustainability and consolidating foreign positions. (Editing by Ayen deng Bior and William Maclean).
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Copper falls to a near 2-week-low as stocks increase, Greenland fears diminish
The price of copper fell to the lowest level in nearly two weeks on Friday as exchange stocks rose. U.S. president Donald?Trump also backed off his threat to impose tariffs against countries that opposed his taking over Greenland. As of 1700 GMT, the benchmark three-month copper price on the London Metal Exchange had fallen 0.4% to $12,756 per metric tonne. The price had fallen to $12,621 in the previous session, its lowest level since January 9. Trump on Wednesday said that military force would not be used to take Greenland. He also announced that he will no longer impose tariffs against?European Allies, which he had previously threatened to implement on February 1. Tom Price, Panmure Liberum's analyst, said: "The primary driver of the market is no longer in play. Everything pulls back because it's not there anymore." The cash LME contract for copper was trading at $78 per ton less than the three-month forward. After surging to more than $100 on Tuesday, it is clear that there is little demand for metals in the short term. China, the world's largest metals consumer, produced a record amount of refined copper during December. LME Copper Stocks After 8,725 tonnes of copper were imported into U.S. storage facilities this month, LME stocks have increased to 168.250 tons. This is the highest level since May 2025. LME inventories are dwarfed, however, by the over 500,000 tons of copper stored in Comex's warehouses . Traders said that the arbitrage for shipping copper from LME to Comex has been significantly reduced or closed. Sucden Financial stated in a report that "a negative?arb encourages shipments back to LME and helps explain the stock increases, while Comex inventories continue to increase in parallel." The rest of LME complex is generally?higher. This was supported by the weaker dollar which makes dollar-denominated precious metals more affordable for holders of foreign currencies. Zinc prices rose by 1.4%, to $3216.50 per ton. Nexa Resources announced that production had temporarily been suspended at its Atacocha San Gerardo Mine in Peru. Aluminium increased by 0.6%, to $3,113. Lead decreased by 0.1%, to $2,021. Nickel rose 0.2%, to $18,035 while tin increased 1.7%, to $52,205.
Worldwide offshore wind market poised to miss out on big targets as challenges install
After a year of canceled projects, damaged turbines, and abandoned lease sales, the worldwide offshore wind market no longer has much opportunity to hit the lofty targets set by federal governments in the U.S., Europe and somewhere else, marking a. obstacle for efforts to combat climate change.
The technology forms a huge part of federal government techniques to. advance renewable resource and decarbonize the global power. industry due to the fact that it can produce large amounts of electrical energy. near largely populated coastal regions. Missing targets by a. large margin will leave a gap that might be hard to fill.
Reuters spoke to 12 offshore wind companies, market. researchers, trade associations, and government authorities in six. countries to come up with an international image of the state of the. market and its outlook, and discovered soaring expenses, project. delays and restricted supply chain financial investment were hobbling. setups.
We're pretty far from these targets, Soren Lassen,. head of overseas wind research at energy research study company Wood. Mackenzie, stated in an interview. He stated offshore wind farms now. have an international typical cost of $230 per megawatt-hour (MWh)-- up. 30% to 40% in the previous two years and more than triple the. average of $75/MWh for onshore facilities.
That has companies pulling back. BP last month stated it was. considering selling a stake in its overseas wind service, and. Equinor earlier this year abandoned investments in Vietnam,. Spain and Portugal. Meanwhile GE Vernova, among the. industry's leading turbine suppliers, is not taking brand-new orders.
We do not predict adding to (our) stockpile without. substantially various industry economics than what we see in. the marketplace today, GE Vernova CEO Scott Strazik said on a. current financier call.
World federal governments had actually set a global target in 2015 of. tripling total renewable energy use by 2030, something the. International Renewable Resource Firm (IRENA) stated would need. offshore wind capacity to rise to 494 GW by the end of this. decade, from 73 GW presently.
IRENA Director-General Francesco La Video camera informed Reuters. offshore wind is now projected to disappoint its target by a. third. Price quotes by 3 other prominent research firms job. that the world will not reach 500 GW of overseas wind. installations up until after 2035.
TRUMP EFFECT
Governments in Europe, the Americas and Asia have sought to. prop up the sector with national targets aimed at drawing in. deep-pocketed developers including major international energy business. Equinor, Orsted, RWE and. Iberdrola.
The United States, for example, set a goal in 2021 of 30. gigawatts of offshore wind by the end of this years, but had. less than 200 megawatts running as of May of this year,. according to the National Renewable Energy Laboratory.
The outgoing administration of U.S. President Joe Biden. issued permits for 15 GW of tasks, held 6 lease sales on. numerous coasts, and extended tax credits to the industry.
But U.S. overseas wind has been roiled since in 2015 by. canceled projects and agreements, suspended government auctions,. and a high-profile construction accident at the nation's very first. major commercial project
The market is now stressed that Biden's replacement,. President-elect Donald Trump, will follow through on an election. project pledge to dismantle the market's progress, perhaps. by withholding lease auctions.
Provided the outcomes of the U.S. elections, we see higher. risks than before for the timely execution of offshore wind. jobs there, Michael Mueller, financing chief of German. offshore job developer RWE, told journalists on a profits. call this month.
Energy research company Rystad stated it expects the United. States to reach less than half of its 2030 target.
Representatives of the Biden administration and Trump's. shift group did not provide comment for this story.
Carl Fleming, a partner at law practice McDermott Will & & Emery. who recommends the White House on renewable energy policy, informed. Reuters the U.S. would have a hard time to miss its target despite. who remains in the White Home, given market conditions.
EUROPE ALSO FALLING SHORT
In Europe, Petra Manuel, overseas wind expert at Rystad,. anticipates nations with the greatest overseas wind targets - the. UK, Germany and the Netherlands - to reach about 60%. to 70% of their objectives. Nations with less ambitious targets,. consisting of Belgium, Denmark and Ireland, are also anticipated to. come up short, he said.
Industry trade group WindEurope, meanwhile, said it expects. the European Union to have 54 GW of overseas wind capacity by. 2030, about half of the 120 GW North Sea nations promised.
EU Energy Commissioner Kadri Simson told Reuters that delays. in meeting targets could not be dismissed, but that none had. been formally flagged by member states.
Britain, the second-biggest offshore wind market after. China, will also miss its objective of 60 GW by 2030, stated Damien. Zachlod, managing director of offshore wind designer EnBW. Generation UK.
The UK held its best-funded auction yet in September, adding. 4.9 GW of brand-new arrangements. However future auctions will need far. larger volumes to reach 60 GW on time, he stated.
It will be very, really tough and we will not hit the. target by 2030, he said.
A representative for the UK federal government did not right away. offer remark.
CHINA BUCKS THE PATTERN
China, which ended up being the international leader in offshore wind in. 2022, is bucking the global trend.
Beijing has actually supercharged its industry with aids and low. funding costs. Most of the sector's gamers are state-owned,. and have access to locally-made offshore wind components.
China accounted for majority of 2023 offshore wind. installations, with 6.3 GW, and the International Wind Energy council. trade group estimates the nation will set up 11 to 16 GW. each year in the next two to three years.
Sourcing inexpensive equipment from China would help reduce expenses. for designers in Europe, Japan and the United States, but. governments there have looked for to encourage regional production to. minimize reliance on Beijing.
Elsewhere in Asia, countries consisting of Vietnam, Japan, South. Korea and Taiwan have looked for to broaden overseas wind however also. face troubles linked to soaring expenses and regulatory. unpredictability.
Japan, for instance, has actually set aspirations of building up to 45. GW of overseas wind capacity by 2040, up from less than 1 GW. today. But the country's auctions to date have been little, and. the market is constrained by laws preventing non-Japanese. vessels from operating in overseas wind locations.
Rebecca Williams, deputy CEO of the Global Wind Energy. Council trade group, acknowledged there is a risk the market. might miss its targets, but said striking them is still possible. with the right policies.
Naturally, whenever there's a target, there's a risk that. that target might not be satisfied, Williams stated on the sidelines of. the COP29 conference in Baku.
However the target is not the thing that's going to get the. turbines in the water..
(source: Reuters)