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Oil prices rise as fears about disruptions of supply in Venezuela and Iran increase
Oil prices rose again on Friday. They are now set to make their third weekly increase, due to uncertainty over the future supply from Venezuela, and because of increased concerns about Iranian production. Brent futures gained 44 cents or 0.71% to $62.43 a barrel at 0203 GMT. U.S. West Texas Intermediate crude (WTI), however, rose 39 cents or 0.68% to $58.15. Brent will rise 2.7% this week while WTI is up 1.4%. The price of oil has increased since the U.S. Donald Trump's last-week seizure by Venezuelan President Nicolas Maduro and his claim that the U.S. would control the South American country's oil industry have increased supply concerns. Concerns about supply have been heightened by civil unrest in Iran, a major Middle Eastern oil producer. Also, the Russia-Ukraine conflict and its potential to spread to Russian oil exports has raised concerns. Tina Teng is a market strategist with Moomoo ANZ. She said that the price increase was primarily due Trump's claim of control over Venezuela's oil. This could have led to a 'price hike' from discounted sales. Sources familiar with the situation say that oil major Chevron, trading houses Vitol, Trafigura and other firms are competing to get deals from the U.S. government to export Venezuelan crude oil. Trump demanded Venezuela grant the U.S. access to all of its oil sectors just a few days after Maduro was captured on Saturday. U.S. officials claim Washington will continue to control Venezuela's oil revenues and sales. Two sources claim that the companies are disputing the initial deals for the marketing of up to 50,000,000 barrels of oil that the state-run PDVSA accumulated as inventories during a severe embargo which has resulted in the seizure of four tankers. The market will pay attention to the outcome of the Venezuelan oil that is in storage in the next few days. Teng said that if sales are not limited, oversupply could continue to be a problem. Haitong Futures?reported in a Friday report that oil prices spiked after several days of low levels, partially correcting an earlier disregard for geopolitical risk. Internet monitoring group NetBlocks reported a nationwide internet blackout in Iran on Thursday, as protests against economic hardships continued throughout the country. Masoud Pezeshkian, Iran's president, warned against overpricing and hoarding of goods. This was reported by state media on Thursday as Tehran rolled out high-stakes reforms to subsidy policies during nationwide protests. Haitong Futures stated that global inventories continue to rise, but oversupply is the main factor that could limit the gains. Haitong Futures said that unless risks in the region of Iran escalate, it is unlikely to be a sustained recovery. Sam Li reported from Beijing, and Jeslyn Lerh edited the report in Singapore.
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BlueScope’s top investor rejects $9 Billion M&A Offer for Firm, Calls it Undervalued
AustralianSuper, BlueScope Steel's largest shareholder, said that a $9 billion takeover bid from SGH & Steel Dynamics in the U.S. undervalued the company and it supported its decision to reject this offer. After announcing its increase from 12.5% on Thursday, the pension fund now holds 13.52% in BlueScope. BlueScope, which rejected the SGH Steel Dynamics offer of?A$30 a share on Wednesday, said that it was "significantly undervalued" and accused the acquirers for trying to purchase BlueScope 'on the cheap. AustralianSuper's spokesperson stated that "we?support the BlueScope Board's decision to?reject?the offer" and to'remain focused' on executing the strategy of the company without distraction." The current BlueScope offer does not reflect the value we currently believe the business to be worth. According to our current valuation, a transaction would be supported only if the price was substantially higher than A$30 per share. SGH refused to comment on AustralianSuper’s statement and BlueScope didn’t immediately respond when asked for a comment. Australian pension funds are playing a more active role in corporate acquisitions. AustralianSuper, for example, scuppered Brookfield's offer of $10.6 billion to buy Origin Energy. The largest pension fund in Australia said that the bid was undervalued at the time. (Reporting and editing by Scott Murdoch, Cynthia Osterman, and Muralikumar Aantharaman).
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BlueScope’s largest investor rejects $9 billion takeover bid
BlueScope Steel’s largest investor, AustralianSuper said on Friday that it supported the Australian company's decision to reject a $9 billion offer from U.S.-based Steel Dynamics and?SGH?. After announcing its increase in stake on Thursday, the pension fund now holds 13.52 % of BlueScope. BlueScope rejected the $A30 offer from?SGH & Steel Dynamics on Wednesday, saying that it was "very significantly undervalued". The company also accused the acquirers of trying to buy BlueScope 'on the cheap. AustralianSuper's spokesperson stated that "we support the BlueScope Board's decision to reject the offer and remain focused on executing the company's strategy, without distraction." The current BlueScope offer does not reflect the value we currently believe the business to be worth. According to our "current valuation", we would only approve a deal that was substantially higher than the price of A$30 for each share. BlueScope,?SGH and?AustralianSuper did not respond immediately to a comment request on?AustralianSuper?s statement. Australian pension funds are playing a more active role in corporate takeovers, with AustralianSuper rejecting Brookfield’s $10.6 billion offer for Origin Energy. The largest pension fund in Australia said that the bid was undervalued at the time. (Reporting and editing by Scott Murdoch, Cynthia Osterman).
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Two people are wounded by US border agents in Portland
Police in Portland, Oregon said that two U.S. federal agents had shot and injured two people. They were then taken to hospital. Portland police released a statement saying that two people were hospitalized following an incident involving federal agents. Bob Day, the police chief in Minneapolis said: "We are aware of the high level of emotion and tension that many people feel in the aftermath of the shooting in Minneapolis. However, I ask the community to be calm while we continue to investigate the incident." The police said that they did not take part in the shooting on Thursday. The FBI announced that it was investigating a shooting in which U.S. Customs and Border Protection (CBP) agents were involved. In the Minnesota shooting, an officer of U.S. Immigration and Customs Enforcement was involved. ICE is a separate agency of Homeland Security. Portland Police said that the condition of those who were shot is unknown. Officers responded and found two people with gunshot injuries. Officers applied tourniquets and called emergency medical personnel. "The patients were transported to hospital." Portland Police said in a press release. ABC News reported that Portland City Council president Elana Pirtle Guiney said, as far as she was aware, they were still alive. On social media, FBI Portland announced that it was investigating a shooting that occurred at around 2:15pm near the 10000 Block of Main St. Portland. The circumstances of the shootings in Portland are not yet known. The fatal shooting by an ICE agent of a 37-year old mother of three on Wednesday in Minneapolis drew widespread condemnation and protests from Minnesotans and other officials. Portland Mayor Keith Wilson stated in a statement that his city is now dealing with violence from federal agents. "We cannot sit back while constitutional protections are eroded and bloodshed increases." He asked ICE to halt its?operations' in the city until a thorough investigation could be conducted. Wilson stated that "federal militarization undermines community-based safety and runs against the values which define our region." Wilson said: "I will use all legal and legislative tools available to protect the civil and human rights of our residents."
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Reliance India would buy Venezuelan oil, if permitted
Reliance Industries, India's operator of the largest refinery complex in the world, announced?on Friday that it would buy Venezuelan oil, if allowed to be sold to non-U.S. customers. In an email response to queries, a Reliance Industries spokesperson said: "We are waiting for clarity on the access of Venezuelan oil by buyers outside the United States and will consider purchasing oil in a compliance manner." Industry sources say that state-run refiners Indian Oil Corp. and Hindustan Petroleum Corp. will also buy Venezuelan oil, if the sale of Venezuelan crude is allowed to companies outside the United States. Both companies did not respond immediately to requests for comment. RELIANCE STOPPED BUYING VENEZUELANOIL LAST YEAR Caracas reached an agreement with Washington this week for the export of up to $2 billion in Venezuelan crude oil, or 30-50 million barrels to the United States after U.S. forces captured President Nicolas Maduro, on January 3. Reliance stopped purchasing Venezuelan oil in March 2025, after President Donald Trump announced that a 25% tariff would be applied to nations who bought crude from the South American producer. Conglomerate received last Venezuelan oil shipment in May of last year. Reliance has two refinery facilities in the western Gujarat state with a combined crude oil capacity of 1.4 million barrels a day. This allows it to process heavier and cheaper crudes like Venezuela's Merey. Sumit Ritola is a lead research analyst at Kpler, specializing in refining and modeling. A COMFORTABLE ALTERNATIVE FOR 'RUSSIAN ENERGY' LSEG's trade flows reveal that India's HPCL Mittal Energy, Nayara Energy IOC and Mangalore Refinery & Petrochemicals imported Venezuelan crude oil in the past. Ritola stated that Venezuelan oil was a "politically acceptable diversification option" for India in comparison to Russian oil. India is under pressure from the West to reduce its Russian oil purchases following Moscow's invasion of Ukraine, as they are concerned that oil revenues may be used to fund Russia's war efforts. Last year, the United States doubled tariffs against Indian goods from 25% to 50% citing India's "heavy purchase of Russian crude". On Wednesday, a Republican Senator claimed that Trump has 'greenlit?legislation to sanction countries doing business in Russia. Reliance, however, has said that it will not be receiving Russian oil this January. India's Russian imports could be drastically reduced by the decision. Ritola stated, "We have already seen Reliance reduce its intake of Russian oil. This shows refiners can adapt to new risks or compliance issues." (Reporting and Editing by Louise Heavens, Bernadettebaum, and Nidhi verma)
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Marathon Petroleum, a US refiner, has announced that it will bid for Venezuelan crude.
Marathon wants to bid for Venezuelan crude oil, said the company on Thursday. The U.S. government is preparing to increase imports after the ouster of President Nicholas Maduro in January. The company declined to confirm if there would be an auction. Caracas, Washington and other Venezuelan oil producers reached an agreement this week for the export of up to $2 billion in Venezuelan crude to the United States. This is equivalent to 30 million to 50 million barrels. Citgo Petroleum, a Venezuelan-owned refiner, also wants to take part in any auctions of Venezuelan crude, the board decided Thursday, according two sources within the company. The company has ?not been allowed to import Venezuelan crude for years after it severed ties with ?its parent, Caracas-headquartered oil firm PDVSA, in 2019. Citgo didn't immediately respond to a comment request. The biggest beneficiaries of an easing in sanctions against Venezuela are expected to come from U.S. Gulf Coast refining companies, many of which are designed to process more of the Venezuelan oil than what the U.S. produces.
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Stocks mixed; yields rise before US jobs data
Treasury yields rose Thursday, ahead of the key U.S. Jobs Report on Friday. Defense company shares also gained as a result of U.S. president Donald Trump's plans to spend $1.5 trillion on a military budget. The?aerospace-and-defense index reached a record high. European defense shares also hit a new peak. Investors also watched developments in Venezuela, which led to a rise in oil prices. The U.S. military captured Venezuelan president Nicolas Maduro over the weekend. The White House announced on Tuesday that Trump is also discussing the possibility of acquiring Greenland. The number of Americans who filed new claims for unemployment benefits increased moderately in the last week. This suggests that layoffs will be relatively low by the year 2025. However, the demand for labor is still sluggish. The Federal Reserve is expected to cut rates at least twice this year. However, a divided Federal Reserve indicated that there would only be one rate cut in 2026. At its meeting in this month, the Fed is expected to maintain rates at their current level. The U.S. Employment report for December, which is due on Friday, will be crucial. The S&P 500 closed the day at a flat level. The S&P 500's technology sector was the worst performing, but energy was the best. The global stock index fell slightly. "There are lots of potholes around, but we're skipping over them so far," said Rick Meckler. Cherry Lane Investments is a family-owned investment firm in New Vernon, New Jersey. Investors remain positive at the bottom of the market. The Dow Jones Industrial Average rose by 270.03 or 0.55% to 49,266.11; the S&P 500 gained 0.53 or 0.01% to 6,921.46; and the Nasdaq Composite dropped by 104.26 or 0.44% to?23480.02. Nvidia shares fell 2.2%, Broadcom fell 3.2% and Microsoft dropped 1.1%. The MSCI index of global stocks fell by 2.22 points or 0.22% to 1,029.26. The pan-European STOXX 600 fell by 0.19%. After?two consecutive days of declines in oil prices, they settled at a high of two weeks. Brent futures gained $2.03 or 3.4% to settle at $61.99 a barrel. U.S. West Texas Intermediate crude (WTI), however, only gained $1.77 or 3.2% to settle at $57.76. As the dollar strengthened, and investors secured profits, copper and nickel prices dropped. DOLLAR UP YIELDS The yield on the benchmark 10-year notes?U.S. The yield on 10-year notes increased 4.5 basis points, to 4.183%. The yield curve between 2- and 10-year notes steepened by around 2 basis point to 69 basis points. Venezuela's defaulted bonds finally cooled down after their near 40% increase following the weekend's event fuelled investor hope for a "massively complicated debt restructuring". Investors are awaiting the Friday labor report. The dollar index (which measures the U.S. Dollar against six rival currencies) was up by 0.2% to 98.922 at its highest level since December 10.
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Stocks mixed; yields rise before US jobs report, defense shares gain
The major?stock indices were mixed on Thursday, and Treasury yields increased ahead of the key?U.S. Jobs report was mixed, but defense shares rose amid President Donald Trump's plans for a $1.5 trillion budget. The aerospace and defense index reached a record high. European defense shares also hit a new all-time high. Investors also watched developments in Venezuela, which led to a rise in oil prices. The U.S. forces captured Venezuelan president Nicolas Maduro over the weekend. Tuesday, the White House announced that Trump had also discussed options to acquire Greenland. "The defense budget is growing, if not increasing." Joe Saluzzi is a partner and cofounder of Themis Trading. "You're getting more pressure from administration to do certain things, but investors don't appear to care at this point," he said. The number of Americans who applied for unemployment benefits increased moderately in the last week. This suggests that layoffs will be relatively low by the year 2025. However, the demand for labor is still sluggish. The Federal Reserve is expected to cut rates at least twice this year, despite the fact that a divided Federal Reserve indicated in December that there would only be one rate cut in 2026. At its meeting in this month, the Fed is expected keep rates unchanged. The U.S. Employment report for December, which is due on Friday, will be crucial. The Dow Jones Industrial Average rose by 270.03 or 0.55% to 49,266.11, while the S&P 500 gained 0.53 or 0.01% to 6,921.46. Meanwhile, the Nasdaq Composite dropped 104.26 or 0.44% to 23,480.02. The MSCI index of stocks around the world fell by 2.22 points or 0.22% to 1,029.26. The pan-European STOXX 600 fell by 0.19%. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others) rose by 0.18%, reaching 98.90. The dollar-euro exchange rate was on the verge of its eighth consecutive drop. The yield on benchmark U.S. 10 year notes increased 4.5 basis points from late Wednesday to 4,183%. Venezuela's defaulted bonds finally cooled down after their near 40% surge following the weekend's event fuelled investor hope for a massively complicated debt restructuring. U.S. crude rose by 1.8%, to $57.00 per barrel. Brent increased to $61.13 a barrel. This is a 1.95% increase on the day. Gold prices were almost flat. After?two consecutive days of declines in oil prices, they settled at a high of two weeks. Brent futures gained $2.03 or 3.4% to settle at $61.99 a barrel. U.S. West Texas Intermediate crude (WTI), however, rose $1.77 or 3.2% to settle at $57.76.
Venezuela and oil prices are in focus after US inventory withdrawal
After two days of declining prices, oil prices increased on Thursday as the?U.S. Investors were encouraged to purchase futures as they watched Venezuela's developments. Brent crude futures rose 24 cents or 0.40% to $60.20 per barrel at 0343 GMT. U.S. West Texas Intermediate crude crude was up 22 cents or 0.39%.
The benchmarks for both oil and gas fell by more than 1% on Wednesday, with the market expecting plenty of supply in 2019. Morgan Stanley analysts, for example, estimate that there will be a surplus as high as 3,000,000 barrels a day during the first half 2026.
Mitsuru Muraishi is an analyst with Fujitomi Securities. He said that the declines in prices on Thursday prompted some traders to purchase futures.
Pullback buying has pushed prices a little higher, but persistent concerns about oversupply are limiting upside momentum. The downward trend will likely continue while markets watch developments in Venezuela," he said. He forecast that WTI would likely fall below $54. Energy Information Administration reported that U.S. crude stockpiles fell by 3.8m barrels, to 419.1m barrels during the week ended January 2. This was in contrast with the analysts' expectation in a survey for a 447,000 barrel increase. As part of Donald Trump's aggressive campaign to control oil flows in America and force Venezuela to become an ally, the U.S. seizes two Venezuelan-linked oil tanks in the Atlantic Ocean, including one that was sailing under the Russian flag. Washington announced on Tuesday a deal to gain access to up $2 billion of Venezuelan crude. In a Tuesday social media post, Trump said that Venezuela would "turn over" between 30 million and fifty million barrels worth of "sanctioned" oil to the U.S.
This would allow for the release of Venezuelan oil, which has been slowed down?due to a U.S. ban on tankers entering and leaving the country. ING analysts stated in a report that directing this oil to the U.S. could reduce the 'need for Venezuelan to cut production due to storage restrictions.
Sources said that the deal could initially require a rerouting cargoes bound for 'China. Chinese independent refiners, which consume a large portion of Venezuelan oil imported by the country, could switch to Iranian oil in order to cover the shortfall. Trump and his advisors are planning to dominate Venezuela's oil industry for many years. The Wall Street Journal reported that Trump told his aides his initiative could lower oil prices as low as $50 per barrel.
The report cited people who were familiar with the issue as saying that the U.S. was considering a plan to exert some control over Venezuela’s state-run PDVSA oil company, including purchasing and marketing the majority of its oil production.
(source: Reuters)