Latest News
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The Russian central bank claims that higher fuel prices in Russia have accelerated the consumer price increase
The Russian central bank published the minutes of its July 24 meeting on Wednesday. They stated that higher fuel prices in Russia accelerated the consumer price growth in June by 0.3% and by 0.2% in the first half. After Ukrainian drone attacks on oil refining facilities disrupted the supply, Russians experienced a 'fuel shortage across all 11 time zones of the country. This led to long queues, higher gas prices, and rationing in some regions. Authorities say that the?situation? has stabilised?in many areas. Central bank officials said that the total direct and indirect impact on inflation of the fuel price increase will not exceed 1.5% for the entire year. The benchmark interest rate was cut to 14% from 14.25% on July 24, despite an 'inflation spike linked to Ukrainian drone strikes on major oil refineries and ecommerce warehouses. The regulator stated that most?board members thought there was room for more rate cuts in this?year, although the scope had shrunk. Reporting by Elena Fabrichnaya, Writing by Anastasia Teterevleva, Editing by Andrew Osborn
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TAE, a developer of fusion energy, signs an agreement for future fuel supply options with helium-3
TAE Technologies, a developer of fusion energy, announced on Wednesday that it had signed a deal with Black Moon Energy, whose private company could 'provide helium-3 as a fuel option in the future for its planned power plant. Nuclear fusion is still a long way from commercial power plants. Developers are still trying to prove the performance of reactors, attract capital, and ensure long-term supply. TAE has raised over $1 billion from Alphabet, Google, and Chevron. It is planning to build its first fusion plant, Da Vinci. The power plant will be able to generate 50 megawatts of electricity. Site selection is planned for later this year and operations are expected to start in 2031. The company stated that future power plants will be designed to produce between 350 and 500 megawatts. According to the companies, this agreement also includes collaboration in commercial development. Michl Binderbauer, TAE's chief executive officer, said that the agreement could offer a "alternative fuel supply option" as the company transitions to commercial power generation. Trump Media announced in December that it would acquire TAE through an all-stock transaction valued at more than $6 billion. This deal would create a publicly-traded fusion-energy firm. In 'June, the companies had planned to spin-off Trump Media's legacy business in social media, including Truth Social, and other assets into a separate listed entity. The Foothill Ranch, California-based firm expects to file merger-related documents to U.S. regulators, and complete the transaction by the end of 2026. This is subject to regulatory approvals, and other closing conditions.
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India eyes Venezuela blocks operatorship; regains Russia's Sakhalin-1 stake
India's Oil and Natural Gas 'Corp (ONGC) hopes to sign agreements soon with Venezuela 'to operate two oil 'blocks under the South 'American nation's 'new petroleum 'law', its finance chief'said 'on Wednesday. ONGC Videsh (ONGC Videsh is the overseas investment arm of the state-run ONGC) holds a stake of 40% in the San Cristobal oil field, and along with other Indian firms, a stake 18% in the Carabobo-1 Project. "Now, we are able to work freely on Venezuelan projects." We had restricted our operations in Venezuela because of sanctions-related risks," said finance director Anupam agarwal on a?analyst's call following the company's earnings for the June quarter. He said Venezuela offered additional incentives under its 'petroleum laws' and that ONGC was experienced in 'operating fields of similar geology? in India. He said, "We are taking over operatorship of some projects from PDVSA, we believe we will soon see positive developments." RUSSIAN SKHALIN-1 ASSET Agarwal stated that ONGC regained their 20% stake in Russia's Sakhalin-1 project for oil and gas after a four-year gap. He said that the restored stake increased the group's revenue contribution to the project from 5 billion to 6 billion rupees. After the West imposed broad?sanctions against Moscow in response to its invasion of Ukraine, Sakhalin-1 was transferred by Russia to a new domestic operator. ONGC has agreed to pay?payments to the Sakhalin-1 Abandonment Fund?in roubles, using dividends that have been frozen in Russia. This will allow it to keep its 20% stake, as was reported last year.
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India eyes Venezuela blocks operatorship; regains Russia's Sakhalin-1 stake
India's Oil and Natural Gas 'Corp (ONGC) hopes to sign agreements soon with Venezuela 'to operate two oil 'blocks under the South 'American nation's 'new petroleum 'law', its finance chief'said 'on Wednesday. ONGC Videsh (ONGC Videsh is the overseas investment arm of the state-run ONGC) holds a stake of 40% in the San Cristobal oil field, and along with other Indian firms, an 18% share in the Carabobo-1 Project. "Now, we are able to work freely on Venezuelan projects." We had restricted our operations in Venezuela because of sanctions-related risks," said finance director Anupam agarwal on a?analyst's call following the company's earnings for the June quarter. He said Venezuela offered additional incentives under its 'petroleum laws' and that ONGC was experienced in?operating similar geology - fields?in India. He said, "We are taking over operatorship of some projects from PDVSA." We believe that we will soon see positive developments. The new agreements have been signed. RUSSIAN SKHALIN-1 ASSET Agarwal stated that ONGC regained their 20% stake in Russia's Sakhalin-1 project for oil and gas after a four-year gap. He said that the restored stake increased the group's revenue contribution to the project from 5 billion-6 billion rupees per quarter, up to a total of?10 billion Indian?rupees (about 105.13 millions dollars). After the West imposed broad?sanctions against Moscow in response to its invasion of Ukraine, Sakhalin-1 was transferred by Russia to a new domestic operator. ONGC has agreed to pay?payments to the Sakhalin-1 Abandonment Fund?in roubles, using dividends that have been frozen in Russia. This will allow it to keep its 20% stake, as was reported last year.
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Reliance's luxury unit brings Kim Kardashian SKIMS to India
Reliance Brands is the luxury retail arm of Reliance Retail. They have partnered with Kim Kardashian's SKIMS in order to bring this shapewear brand into India. This comes as global companies race to enter India's growing fashion and beauty market. The company, which is a subsidiary of Mukesh-Ambani's Reliance Industries, said that it would launch the SKIMS name across both physical and digital channels?starting in Delhi and Mumbai. Indian beauty retailers are racing to introduce international brands into the country as Gen Z and younger consumers gravitate towards global trends in beauty and brands backed by celebrities, thanks to social media. This year, Indian beauty and fashion retailer Nykaa teamed up both with Selena Gomez’s Rare Beauty as well as Shiseido Group’s NARS Cosmetics. SKIMS is a new partnership that will add to Reliance Retail’s growing portfolio of foreign brands, including Rihanna’s Fenty Beauty, Fenty Skin and designer brands like Stella McCartney and Valentino. The entry of SKIMS comes at a time when India's shapewear industry is booming, with a mix?of?homegrown direct to consumer brands, such as Underneat, competing for customers. SKIMS, founded in 2019, has recently opened'stores in London and Dubai after raising $225m in funding which valued the company at 5 billion dollars.
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Phillips 66 surpasses its quarterly expectations as the Iran War boosts US refining profits
Phillips 66'reported a nearly 4-fold increase in'second-quarter profits on Wednesday, crushing Wall Street expectations, as the Middle East conflic? squeezed global fuel suppli?es and sent U.S. refinery margins soaring. The Iran War has been a boon to U.S. refiners, as buyers from around the world have scrambled for alternative fuels amid fears of disruptions in Middle Eastern exports. Fuel exports from the United States have reached record levels, especially for diesel and other refined fuels. Phillips' refining segment reported a record jump in earnings adjusted to $3.09 Billion from $392 MILLION a year ago. The?realized profit margin? in the second quarter?more than?doubled from a year ago to $24.08 a barrel. The company's quarterly net profit was $3.85 billion. This is its highest quarterly profit since the 2022 Russian invasion of Ukraine, which disrupted global supply chain and increased refinery earnings. In premarket trading, shares of the company increased 1.4% to $208,67. Phillips 66’s renewable fuel segment reported a quarterly adjusted profit of $544 million compared to a loss of $133 millions a year ago. After years of margin pressures, U.S. refiners have begun to see better returns on renewable fuels. This is due to a recent rise in the blending of biofuels mandates as well as a rise in diesel prices related to the Middle East conflict. According to data compiled and published by LSEG, Houston-based Phillips 66 posted an adjusted profit of $9.41 for the three months ended June 30 compared to analysts' average estimates of $7.44.
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Hungary and Albania both cut power in the face of Europe's heat
Emergency services in Albania battled a wildfire?in the southern region Mallakaster while?Hungarians?cut back on power consumption due to a heatwave?and drought?that continued to affect large parts of Europe's south and east. This summer, Europe, the continent that is warming up fastest in the world, was ravaged with record-breaking temperatures and devastating wildfires. France and Spain were particularly hard hit. It is now Italy that has been focusing on the heatwave. Temperatures in some places reached around 40 degrees Celsius. It was the heat that prompted the Vatican's decision to move Pope?Leo's weekly general audience, which had been held in St Peter's Square during the July holiday, indoors. Rome visitors welcomed the decision, as they were seeking relief from the hot conditions. A tourist from Mexico named?Diego Amaya said, "I suppose that it is better to have it inside because of the heat." RECORD LOW ON DANUBE Hungarian households and companies reduced their power consumption in the past week following a government appeal to reduce the pressure on the grid due to the severe drought. Budapest, the capital of Hungary, is bracing itself for the heatwave's peak on Wednesday and Thursday. Temperatures of 40 C to42 C (104 F - 108 F) are expected. The Danube's record-low levels have forced Hungary to shut down its only nuclear plant that uses river water for cooling. This has created an energy crisis which has stretched the power supply capacity to the limit. Wildfires in Albania's Mallakaster forced 15 families to evacuate, along with their animals and pets. Ground and aerial crews battled the flames, trying to prevent them from reaching homes near a nearby village. In the rocky, mountainous terrain, south of Gjirokaster, an Albanian city, efforts continued to be made to contain another wildfire. This fire was likely started by lightning. A wildfire in Greece has destroyed thousands of acres of farmland northwest of Athens. The fire was likely caused by electricity conductors vibrating and then fanned with gale force winds. On Wednesday, the fire appeared to be largely contained. However, hundreds of firefighters were still in the area to keep it from re-igniting. Six helicopters also doused scattered smoke spots. The agriculture is suffering from the hot and dry summer. According to an analysis released on Wednesday, Britain's cereal harvest is likely to be the worst since 1984 when comparable records were first kept. This is because the crops have withered after one of the most arid and hot spring-summer seasons on record.
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Gold reaches a one-month high as US-Iran hopes for peace ease inflation concerns
On Wednesday, gold rose by more than 2% to a new one-month-high as investors looked forward to key U.S. employment data and hoped that a U.S. Iran peace deal would ease inflation fears. By 1113 GMT, spot gold had risen 2.3% to $4168.34 an ounce, its highest since July 7. U.S. Gold Futures increased 1.8% to $4227.40. Donald Trump, the U.S. president, said that his administration had "very positive discussions" with Iran on Tuesday during an all-day negotiation. This has fueled expectations for a quick end to this five-month conflict. There are more signs that a Gulf ceasefire agreement is in the works, and this means Treasury yields will be moving lower on account of inflation concerns, making non-yielding investments like gold even more attractive," Jamie Dutta said, a market expert at trading platform Nemo.money. The U.S. Dollar remained under pressure. This made metals priced in greenbacks more appealing to holders of other currencies. Yields on the benchmark 10-year U.S. Treasury notes fell to an all-time low. In a high-interest rate environment, gold tends to lose appeal despite its role as an inflation hedge. It yields no return. According to the CME FedWatch Tool, traders now price in a 57% chance of a rate hike for September, down from 67% one day earlier. Jeff Schmid, President of the Federal Reserve Bank of Kansas City, said that monetary policy needs to be tightened to bring "too-high" inflation to 2%. Concerns about the Fed’s credibility are likely to ease over the next few months as the central bank increases interest rates. This would lead to gold prices dropping and settling under $4,000 per ounce by the end of this?year," said Hamad Hussain a climate and commodities economist with Capital Economics. The ADP Employment Report is due at 1215 GMT, and the non-farm payroll report for July will be released on Friday. Spot silver rose 3.3% to $61.50 an ounce, its highest level since July 7. Palladium was up 1.5% at $1,373.35, following a two-month high. Platinum rose 1% to $1752.20. (Reporting and editing by Rashmi aich and Joyjeet Das in Bengaluru)
Venezuela's oil, mining and mining sector: huge potential but weak infrastructure
Here are some key facts about Venezuela's oil and mining sector, after the capture of President Nicolas Maduro by U.S. troops on Saturday.
RESERVES
Official data show that Venezuela may have the largest oil reserves in the world, but its crude production is only a fraction of what it could be due to years of mismanagement, a lack of investment, and sanctions.
According to the Energy Institute in London, Venezuela has about 17% of the global?reserves (303 billion barrels), ahead of Saudi Arabia as the leader of the Organization of Petroleum Exporting Countries.
According to the U.S. Department of Energy, Venezuela's heavy oil reserves, located in central Venezuela, are expensive to produce but relatively simple to process.
Maduro, then acting president Delcy Rodrguez, the former vice president of Venezuela, announced in 2019 a five-year plan to boost mineral extraction and replace oil production.
Venezuelan government data released the year before used terms from the mining industry interchangeably including resource and reserve, making it hard to determine if Caracas was aware of its full mining potential.
A reserve is a volume estimate for a mineral which can be economically produced. The volume of a particular mineral in a region is called a resource, regardless of whether it can be economically extracted.
The 2018 report was published by Venezuela's Mining Ministry website as a "minerals catalogue" for investors. It estimated that coal reserves were approximately 3 billion metric tonnes and nickel reserves were 407,885 tons.
The same report also estimated gold resources of 644 metric tonnes, iron ore resources of 14.68 billion tons (while acknowledging that much of this was a speculation estimate) and bauxite reserves of 321.5 millions metric ton.
Venezuela published in 2021 a map showing mineral reserves, based on 2009 data. The map did not include the volume of reserves for antimony, copper and nickel, coltan (molybdenum), magnesium, zinc, titanium and tungsten.
It does not seem that the country has a large amount of rare earths. Rare earths are a group of 17 minor metals which is used to produce magnets to turn energy into motion. Rare earths is a subset critical minerals.
PRODUCTION
Venezuela, along with Iran, Iraq Kuwait and Saudi Arabia, was a founder member of OPEC. The country's struggle with electricity has repeatedly hindered mining and oil operations.
In the 1970s the?country produced as much as 3.5 millions barrels of crude oil per day, which represented at that time over 7% global oil production. In the 2010s, production fell below 2,000,000 bpd and reached an average of 1.1,000,000 bpd in 2012 or just 1% global output. This was about the same as the U.S. State of North Dakota.
If the developments lead to a real regime change in the end, it could result in even more oil being available on market over time. It will take some time before production recovers fully," said Arne L. Rasmussen, Global Risk Management.
Saul Kavonic, analyst at MST Marquee, says that if regime change is successful, Venezuelan exports will grow, as sanctions are lifted, and foreign investments return.
Jorge Leon, Rystad's head of geopolitical analyses, said that Libya and Iraq are clear examples.
Trump said to Fox News Saturday that the United States will be heavily involved in Venezuela's petroleum sector.
It is unclear what the operational status of mines linked to Maduro’s five-year plans are. Maduro's National Council for Productive Economy said last month that the national production of iron ore, gold and coal increased in the first quarter of 2025. However, it did not provide any figures.
Venezuela nationalized the gold sector in 2011. The government controls CVG, a maker of iron and steel.
Last October, it was reported that Venezuela had restarted its coal production. The country aims to export over 10 million metric tonnes of this mineral by 2025. The government has not yet met this target. The U.S. Geological Survey estimates that Venezuela produced 100,000 tons of coal in 2019 from its 731 million tons of reserves.
In the last decade, oil has accounted for a large part of the country's mineral production, which includes nickel, bauxite and iron ore.
USGS data for 2021 shows that Venezuelan bauxite production will be 250,000 metric tonnes, down from 550,000 tons last year. Iron ore production, on a basis of iron content, was 1,41 million tons and gold production, 480 kg.
The USGS estimated that alumina production, which is refined from bauxite and used to produce?aluminium, would be down to 80,000 tons by 2021. This was down from 240,000 tons just four years ago. Aluminum production has been estimated at 20,000 tons, a drop from 144,000 tons four years earlier.
Joint Ventures
Petroleos de Venezuela S.A. (PDVSA) was formed in 1970 when Venezuela nationalized its oil industry. (PDVSA).
Venezuela opened up the oil sector for foreign investment in the 1990s. Venezuela required that all oil projects be owned by PDVSA in majority following the 1999 election of Hugo Chavez. Exxon-Conoco left Venezuela in the 2000s, and their assets were confiscated.
PDVSA has set up joint ventures with Chevron and other companies to boost production. These include ENI, China National Petroleum Corporation (CNPC), Total, and Rosneft, a Russian company.
Maduro has threatened to issue mining licenses in 2023 in a region that is the subject of a dispute over ownership with Guyana, whose neighbor is located in this area.
Maduro’s government has supported the artisanal mining of gold in Venezuelan Amazon since at least 2016.
EXPORTS, ?REFINING
Since the introduction of the sanctions, China is now the largest buyer of Venezuelan crude oil.
Venezuela owes China about $10 billion after China became its largest lender during the late president Hugo Chavez.
Venezuela repays its loans by transporting crude in three very large carriers that were previously owned jointly by Venezuela and China.
In December, two of these supertankers approached Venezuela when Trump announced the blockade on all tankers entering and leaving the country.
According to industry sources and documents, including the monitoring service TankerTrackers.com, about a dozen oil tanks loaded with Venezuelan crude or fuel have left Venezuela's waters in apparent defiance of U.S. Government's export ban.
Trump said to Fox News Saturday that China will get the oil, without providing any further details. Russia has also lent Venezuela billions of dollar, but the exact amount remains unclear.
PDVSA owns significant refinery capacity outside of the country. This includes CITGO, which is located in the United States. However, creditors have been fighting to control it for years in U.S. courtrooms. Reporting by Marianna Paraga, Arathy Sommesekhar Dmitry Zhdannikov Ernest Scheyder Daina Beth Sool; Additional reporting by Tom Daly. Editing by Jason Neely Stephen Coates Nia Williams
(source: Reuters)