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Trump is considering taking control of Venezuela’s PDVSA and lowering oil prices to $50 a barrel, according to WSJ.
The Wall Street Journal reported that U.S. president Donald Trump, along with his advisers, are planning to dominate the "Venezuelan Oil Industry" for many years. Trump told his aides that he believed his efforts could lower oil prices as low as $50 per barrel. The report cited people who were familiar with the situation as saying that the U.S. was considering a plan in which they would exert?some control? over Venezuela's PDVSA state-run oil firm, including purchasing and marketing the majority of its oil production. Could not confirm immediately the report. The White House didn't immediately respond to the?'?zeit imediat??'? a?? or?'???'??'? The?White House did not immediately respond to?' The U.S. is looking to gain control over PDVSA by negotiating a deal that would allow it to purchase and distribute oil from the company, as well as through joint ventures in the past with major oil companies like Chevron. PDVSA announced earlier on Wednesday that it was progressing in its negotiations with the United States regarding oil sales. A board member confirmed this. The U.S. must buy cargoes for international prices. Washington announced a deal on Tuesday with Caracas for?access to up to $ 2 billion in Venezuelan crude. This is a sign the Venezuelan government has responded to Trump's demands that they be open to U.S. companies and risk military intervention. (Reporting and editing by Jacqueline Wong, Christian Schmollinger, and Gnaneshwarrajan in Bengaluru)
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Stocks tremble as investors consider geopolitical data and US data, while oil prices rise
Oil prices stabilized on Thursday, after their recent decline. Stocks were off to a rough start as investors assessed implications of deepening?geopolitical tensions and mixed U.S. labor market data. The top U.S. officials stated on Wednesday that the country "needs" to control Venezuela's oil revenue and sales indefinitely in order to stabilize the economy of the country, rebuild its oil industry and ensure the nation acts in America's best interests. As part of Donald Trump's aggressive campaign to control oil flows in America, the U.S. also seized on the same day two Venezuelan-linked oil tanks in the Atlantic Ocean, including one that was sailing under the Russian flag. The fall of Nicolas Maduro continues to dominate headlines, and the majority of market reaction has been in commodities. The price of oil has fallen this week due to the possibility of increased Venezuelan crude production. However, they have recovered on Thursday. U.S. crude rose 0.7% to $56.38 per barrel while Brent crude futures increased 0.68% to $60.37. Daniel Hynes is ANZ's senior commodities strategist. He said that the market's reaction to Trump's comments about Venezuelan oil control "looks a bit misplaced". The U.S.'s control over oil sales may mean that sanctions or restrictions will remain in place for the short-term, which is a?booster for oil prices. "I suspect that's why the prices are rising this morning." Stocks were mixed elsewhere in the Asian session after a strong start of the New Year that brought markets to new highs, despite global geopolitical divisions. The broadest MSCI index of Asia-Pacific stocks outside Japan fluctuated between gains and losses, while Japan's Nikkei dropped 0.74%. Nasdaq Futures declined 0.02% while S&P500 futures rose 0.05%. European futures were lower. Charu Chanana is the chief investment strategist for Saxo. Geopolitical headlines will drive the market. Investors are trimming their "Japan beta" because of China's dual use export ban and the potential risk associated with rare earths. Japan called China's recent ban on exports of dual-use items for its military as "absolutely inacceptable", amid the threat of further restrictions on rare earths, which are vital to both economies. U.S. No-Farm Payrolls are Up Next Investors also had their eyes on the U.S. Jobs report, due on Friday. This could provide additional clarity on the Federal Reserve rate outlook. Goldman Sachs analysts said that they expect a rise of 70,000 nonfarm payrolls above the consensus in December and that the unemployment rate will edge down to 4.5%. A slew?of data?releases over the weekend painted a mixed image of the U.S. labor market. It appears to be stuck in a state of "no fire, no hire"?. The November JOLTS Report indicates that the labor turnover is still low. In a recent?note, Wells Fargo economists said that the low churn has led to a fragile balance between labor demand & labor supply. We expect the job growth rate to be subdued, as firms are still cautious about adding new employees. The readings didn't change the market expectations for two more Fed reductions this year, and kept currency movements muted on Friday. The euro was little changed at $1.1673, while sterling bought $1.3454 last. The dollar index was steady at 98.77, but the yen slipped to 156.91. Spot gold fell 0.11% to $4,448.20 per ounce.
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Authorities warn of a 'catastrophic Friday' in Australia's southeast as bushfires rage.
On Thursday, uncontrolled bushfires ravaged Victoria's state forcing residents to evacuate. Authorities warned of a "catastrophic fire danger" rating for Friday. Two bushfires larger than 3,000 acres were burning near the towns Longwood and Walwa, as temperatures in some parts of the state are expected to reach 40 degrees Celsius. They have destroyed two structures, and they are expected to continue spreading on Friday due to the heat and wind. Authorities said that Friday's fire danger rating would be "catastrophic", which is the highest possible level. Both fires present a "real risk" of property and life loss. Jason Heffernan, Chief Officer of the Country Fire Authority in Victoria, told a media conference that tomorrow is "a very, very terrible bushfire day". Meteorologists say conditions are similar to those in 2019, when bushfires destroyed large swathes in?southeastern Australia and killed 33 people during what was known as the Black Summer. 450 schools across?Victoria will close their doors on Friday. On Thursday, there are total fire bans in many districts. MetService in New Zealand has also warned of record-breaking temperatures this weekend, as the Tasman Sea heatwave continues to move across the country. The government has issued heat alerts for the northern and eastern parts of New Zealand's South Island. Christine Chen reported from Sydney, Lucy Craymer contributed additional reporting in Auckland and Edwina Gibbs edited the article.
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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)
Nickel prices remain high despite copper nearing record levels
Nickel remained near multimonth highs after a record rally on Wednesday, as expectations of tighter supplies from the top producer - Indonesia - kept nickel near its previous record.
As of 0315 GMT the most traded copper contract on Shanghai Futures Exchange rose 0.45% to 103,760 Yuan ($14.854.69) per metric ton, just below a record 105,500 Yuan.
The benchmark copper for three months on the London Metal Exchange fell 0.49%, to $13,173.50 per ton after reaching an all-time record of $13,387.50 Tuesday.
Citi analysts raised their near-term copper target price to $14,000 per ton on February 2, citing strong market movement that exceeded both their baseline and bullish case forecast?in their December projection. The bank's 2026 average forecast remained at $13,000.
Citi analysts believe that January 2026 could be the year's peak in copper prices. Without new market catalysts, they expect prices to decline to a sustainable level of $13,000.
Nickel prices rose as the Indonesian Government slashed its mining quota of?2026 for the metal in an effort to increase the price.
Shanghai nickel rose 7.3% to 146,770 yuan per ton after rising by?8%, to its highest level since June 2024, at 147720 yuan.
London nickel fell 0.29%, to $18,470 per ton after reaching its highest level since June 2024 at $18,785 on Tuesday.
Sucden Financial analysts cited weaker fundamentals as a reason for the metal's gains being "more susceptible to short-term profit taking".
Shanghai tin gained 5.55%, while London benchmark? jumped by 2.04%.
Investors are also assessing this month's Federal Reserve interest rate path as policymakers try to balance risks associated with inflation and the job market.
Fed Governor Stephen Miran whose term ends in a month said on Tuesday the interest rates were?overly restricting and that cuts of over 100 basis points would be needed to support growth this year.
The U.S. attack on Venezuela, and the capture President Nicolas Maduro remained a focal point.
Aluminium, zinc and lead are also among the SHFE base metals that have seen gains.
Wednesday, January 7 DATA/EVENTS (GMT) 0855 Germany Unemployment Chg SA Dec 0855 Germany Unemployment rate SA Dec 0930 UK S&P GLOBAL PMI: MSC COMPOSITE - OUTPUT DEC 1000 EU HCIP Flash YY DEC 1000 EU HICP-X F,E,A&T Flash YY DeC 1000 EU HCIP X F, E, A, T FLASH MM DEC 1500 US Factory Orders Wednesday, January 7, DATA/EVENTS: 0855 Germany Unemployment Rate SA Dec 0855 Germany Unemployment Change SA Dec 0930 UK S&P GLOBALPMI: MSC Composite - Output Dec 1000 EU HICP X F,E,A&T YY December 1000 EU HCIP X F,E A&T Flash YY De 1000 EU HCIP X F,E A&T Flash MM Dec 1600 US Factory Orders MM October 1500 US ISM
(source: Reuters)