Latest News
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Ukrainian drone attack injures four, damages buildings in Russia's Voronezh, governor says
The governor of Voronezh Region said that an overnight Ukrainian drone strike inflicted injuries on at least four people and caused damage to a number of buildings. The governor Alexander Gusev said on Telegram that an emergency service facility, six houses, and seven apartment buildings were damaged by the attack. The?reports could not be independently verified. Ukraine claims that it has been attacking targets in Russia since the Kremlin launched its war nearly four years ago. This is in response to the repeated drone and missile attacks on Ukrainian cities and infrastructure. Russia launched a missile at a Ukrainian site near NATO member Poland on Friday, an attack Kyiv's European partners characterized as a ploy to dissuade them from continuing their support for Ukraine. (Reporting and editing by Alistair Bell in Melbourne)
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Mississippi man accused in killing six people, including a 7-year old child and a pastor
Officials from law enforcement said that a man was arrested and charged for first-degree homicide in the deaths of six people on Friday night, including a young child, in Clay County, Mississippi. Clay County Sheriff Eddie Scott announced on Saturday that Daricka Moore, 24, is suspected of killing several members of her family and a pastor in the area before she was taken into custody. Officials said that the charge against Moore is likely to be upgraded to capital murder and a death penalty could be imposed if he is found to have mental competency. This is horrible. "This is as bad as it gets," said Scott Colom. He's the district attorney of Mississippi's Sixteenth Circuit Court. His jurisdiction includes Clay County. Scott claims that Moore shot his father, brother and uncle in the head, killing them, on Friday night. He then stole a truck, drove to another location, where he attempted to sexually abuse a 7-year old girl who was related to him before shooting her dead in the head. The?law enforcers responded to the 911 call and were directed to a third location where they found two other males who had been fatally shot. One of those men was a pastor from the area. Moore was arrested at a nearby area 'just before midnight', Scott reported. Scott stated that the motives of the murders were unknown. Scott said at a press conference that the incident had "really?shaken" his community. "I personally don't know why someone would kill a seven-year-old." Scott stated that autopsies will be conducted by the Mississippi Crime Lab. Moore will appear in court Monday. Clay County is located in northeastern Mississippi. It has a population close to 20,000. (Reporting and editing by Sergio Non in Houston, Mark Potter and Rod Nickel.
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Local media and law enforcement say that a suspect has been arrested after six people were killed in Mississippi
Local news outlets and police have not provided any additional information, but say that at least six people died after being shot in Clay County, Mississippi. The suspect is in custody. According to WTVA (an NBC News affiliate), the deaths took place at?three separate shooting locations. Eddie Scott, the Clay County Sheriff, announced on social media that the suspect was "in custody" and no longer posed a threat to 'our?community. WTVA reported that six people were killed. Scott and the Sheriff's Department did not immediately respond to an?ask for comment. Scott posted on Facebook: "I ask you to lift up our victims and their families in your prayers." Clay County is located in the?northeast part of Mississippi. It has a population close to 20,000. Reporting by Ernest Scheyder. (Editing by Sergio Non, Mark Potter and Mark Potter.
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Four tankers, which had left Venezuela in "dark mode", are now back in its waters
Four tankers, the majority of which were loaded, left Venezuela early in January in "dark mode" - that is, with their transponders turned off despite a "strict" U.S. blockade. According to the state company PDVSA, and the monitoring service TankerTrackers.com, the blockade is now in place. Last month, a flotilla consisting of at least three empty ships and a dozen vessels with cargo left Venezuelan waters. This was in apparent defiance to an embargo that President Donald Trump imposed on Venezuela since mid-December. The U.S. seized the?supertanker M Sophia with a Panamanian flag this week as it returned to the country. Another Aframax Tanker Olina, flying a Sao 'Tome and Principe flag, was also?intercepted, but was released to Venezuela Friday by state company PDVSA. Tankertrackers.com spotted three more vessels in Venezuelan waters on Friday night through satellite images. These were the Panama-flagged Merope and Cook Islands-flagged Min Hang, as well as Panama-flagged Thalia III. U.S. authorities had announced on Friday that Olina, formerly known as Minerva m, would be released. They said that the next step in the negotiations between Caracas, Washington and the U.S. for a $2 billion oil deal would be to begin organized crude exports. Donald Trump, the U.S. president, said that arrangements had been made for a supply of oil in a meeting with executives from top oil companies on Friday. Sources said that Vitol, Trafigura and other global trading houses received the first U.S. licensing to carry Venezuelan exports and to negotiate with Venezuela. Naphtha is also expected to be supplied to the OPEC nation, according to sources. Marianna Pararaga, Julia Symmes Cobb and Marianna Parraga contributed to this report.
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Kyiv scrambles after Russian attack to repair the damaged power grid
Kyiv’s heating and water systems were restored after they had been briefly turned off on Saturday due to a particularly cold day. Engineers scrambled for stabilisation of a power grid that was pushed to its limits by a series of Russian airstrikes, including the one from two nights ago. Since the Russian invasion of Ukraine in 2022, Russia has been bombarding Ukraine's power system with intense force. This has caused blackouts that last for several hours each day in many major cities. The heat and water infrastructure has also been severely affected over the past few weeks. This is a growing concern as temperatures have already dropped below minus 10 degrees Celsius. Around noon local time (1100 GMT) on Sunday, the city administration announced that Ukrenergo, the state grid operator, had ordered that the city's power system be shut down. The water and heating systems, as well as the?electrified transport would stop working. Ukrenergo reported that engineers had resolved the immediate problem, caused by previous Russian attacks, and power was returning to parts of Kyiv within an hour. The Prime Minister Yulia Svyrydenko stated that the heating system in Ukrainian cities, which pumps hot water into homes through pipes and is centralised, will also be re-started. She said she expects heat to be restored to all homes on Saturday. She said, however, that power was still a problem in the capital, because the grid had been badly damaged and more people were using electric heaters due to the cold. After the latest Russian missile and drone attack on Kyiv, about 6,000 apartment blocks were left with no heating as bitter cold settled in. Vitali Klitschko, the mayor of Kyiv, said that half of these blocks had their heat restored by Saturday. However, it was then shut off again because there was a problem with the power grid. (Reporting and editing by Max Hunder, Emelia Sithole Matarise and Mark Potter)
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Ethiopia starts construction of the 'African's largest airport' worth $12.5 billion
Ethiopian Airlines officially began a $12.5billion construction project on Saturday for what officials claim will be Africa's largest airport when completed in 2030. The airport is located about 45 km (28miles) south of Addis Ababa. Abiy Ali, Prime Minister of Ethiopia, said on X that "Bishoftu Airport International will be the biggest aviation infrastructure?project? in Africa's?history". The airport has space for 270 planes, and can accommodate 110 million passengers per year. Abiy stated that the airport will reach its capacity in two to three years. Abraham Tesfaye, Director of Infrastructure Development & Planning at the airline, told reporters that it would finance 30% of the project and lenders would finance what's left. He said that the earthworks are expected to be finished in one year. The main contractors will begin work in August 2026. The initial estimate for the project was $10 billion. The African Development Bank is another creditor. Last August, it announced that it would lend $500 millions and lead efforts to raise $8.7 Billion. Abraham stated that "lenders from Middle East Europe China and USA showed strong interest in financing the project." Ethiopian Airlines is Africa’s largest airline. Ethiopian Airlines has added six new routes by 2024/25 and revenues are increasing. (Written by Tim Cocks. Mark Potter edited the text.
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Boeing's largest 737 MAX aircraft model is moving to the next certification stage but still faces obstacles
According to a source familiar with the program, the Federal Aviation Administration approved Boeing's biggest variant of the best-selling 737 MAX, the 'MAX 10', to move on to the second phase flight testing for the plane's much-delayed certification. Both the company and FAA declined comment. Boeing executives previously stated that they expected to complete certification for the MAX 7 & 10, the smallest & largest variants of this popular single-aisle aircraft, by the end of this year. Cirium, an aviation data analytics company, reports that the MAX 10 has over 1,200 orders in its backlog. Boeing has faced delays in the certification of its MAX 7 & MAX 10 models due to a 'deicing issue. Boeing has also experienced delays in certifying the widebody 777X. Boeing received FAA approval in October to increase 737 MAX production from 38?planes a month to 42. This ended a '38-plane limit that had been in place since January 2024. The MAX 7 is the shortened version of two existing types, the MAX 8 & 9, which have already accumulated thousands of flight-hours. Analysts believe that Boeing's cash flow and revenue will increase significantly if it begins deliveries of the MAX 10. DEICING ISSUES UNRESOLVED According to a source, the MAX 7 was not approved by the FAA. The FAA's phase two flight tests include the aircraft avionics and?propulsion, but not the deicing problem. The MAX 10 is competing with Airbus A321neo, and the longer its delayed, the more it risks losing market share. Alaska Airlines has ordered 105 MAX 10 aircraft this week. Alaska CEO Ben Minicucci is confident that the MAX 10 can be certified by this year. Scott Hamilton, principal at the Leeham Company and aerospace analyst, said: "It is progress but not until (the MAX?10) has been certified." Boeing's Everett plant in Washington cannot begin production until there is a clear pathway to certification, according to Hamilton. Reporting by Dan Catchpole and David Shepardson, Washington; editing by Rod Nickel
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CANADA-CRUDE-Discount on Western Canada Select narrows for first time since Maduro capture
Western Canada Select's discount to North American benchmark West Texas Intermediate futures has narrowed for the first time since the capture by the U.S. of Venezuelan President Nicolas Maduro. WCS for Hardisty, Alberta delivery in February settled at $14.80 per barrel below U.S. benchmark WTI according to brokerage CalRock. This compares with $15 on Friday. In the wake of Venezuela's crisis, the discount on heavy Canadian crude has increased by more than 12 percent. This is because an increase in Venezuelan barrels would be able to compete with Canadian heavy oil that is similar in quality in the U.S. Gulf Coast in the long term. The WCS 'forward curve' has widened most in June, July, and December. This could indicate that the market believes Venezuelan supplies will start to increase in the second half of this year. TD Cowen stated that 'Canada has other factors in its favor which could help to prop up WCS Prices if they are under pressure. These include low 'oil inventories' in Alberta, a depleted Strategic Petroleum Reserve in the United States, and the possibility for Chinese refiners to replace Venezuelan supplies with Canadian cargos. Prices of oil rose by 2% in the past week due to growing supply concerns linked to protests intensifying in Iran, a major oil producer, and escalating attacks in Russia's Ukraine war. (Reporting from Amanda Stephenson, Calgary; editing by Shilpi Magumdar)
Bousso: Trump's sweet spot for oil prices is a 'no-man's-land' for the rest of us.
In recent months, oil prices have fluctuated within a relatively small range between $60 and $70 per barrel. This reflects both concerns over rising supplies of oil as well as trade wars or geopolitical conflict. This may be a sweet corner for U.S. president Donald Trump but it's a "no-man's land" for oil producers. The low end of the range was reached in mid-October. This allowed Trump to carry out his promise to impose severe sanctions against Russia's two largest oil companies, Lukoil & Rosneft. These two giants account for 5% of world output. Trump calculated that escalating the economic war against Moscow wouldn't lead to a severe disruption or price spikes, as the oil market was currently oversupplied. At the same, prices at the current level do not threaten the United States as the top oil producer in the world. In October, the U.S. Energy Information Administration increased its production forecasts by 100,000 barrels a day to 13.5 millions bpd. It also raised output forecasts for next year.
CONFUSION REIGNS ON MARKET DIRECTION
Does the U.S. President have a right to expect that prices will stay rangebound?
What you say depends on whom you ask. The International Energy Agency predicts a massive oversupply next year of nearly 4%, or 4 million barrels per day. This could cause prices to crash, and force many producers into drastic production cuts.
The world's leaders in energy do not appear to be overly concerned. The heads of oil trading companies in Abu Dhabi predicted last week that Brent oil would remain within the $60-$70 range for the next year. Some even suggested that the feared oil oversupply might not be as great as the IEA estimates. This is due to disagreements over demand. While IEA analysts expect consumption to increase by 700,000 bpd in this year, OPEC analysts put growth at nearly twice that rate, at 1.3million bpd. China's massive stockpiles this year for which Beijing has not provided any data have further confused the picture of demand. The lack of visibility of a large part of the oil markets due to the increased use of tankers that violate sanctions to transport Russian oil, Iranian oil, and Venezuelan crude has also clouded the picture of supply.
OPEC+ is clearly hedging their bets. Last week, it called for a modest rise in production in December to 137,000 bpd. This would be followed by a break through the first quarter next year.
MAJOR MUDDLE THROUGH
Western oil majors have signaled that they do not expect to see dramatic changes in prices in the foreseeable future.
Exxon Mobil, Chevron, and ConocoPhillips are among the major U.S. producers of shale oils that plan to increase their output in coming years. Exxon Mobil, the biggest U.S. oil company, increased its production forecast for 2025 in the oil-rich Permian Basin by 100,000 barrels per day, to 1.6 millions boed. It maintained the 2027 output of 2 million boed.
Chevron increased its Permian production in the third quarter, and intends to keep it at 1,000,000 boed over many years. In recent years, these firms have made significant cost reductions to be able to pay dividends and generate profits even when crude oil prices are around $60 per barrel. Oil majors have even indicated that they can continue to repurchase shares at current prices. However, they may need debt markets in order to do this.
SWEET SPOT OR "NO MAN'S LAND"?
Does this mean everyone will be satisfied if the prices stay within today's small band? Hardly.
Many OPEC producers need oil prices to be much higher than the current range for their national finances. Saudi Arabia's fiscal breakeven is $92 per barrel, according the International Monetary Fund.
The current oil price range also poses a problem for the market in general. The supply-demand equilibrium will be in limbo until prices break through the floor of this range. If OPEC's optimistic forecasts of demand do not materialize, a violent price correction could occur.
This is because swing producers, especially U.S. Shale Drillers, won't be forced to drastically reduce production until prices drop below $60 per barrel over a long period of time.
According to a survey conducted by the Federal Reserve Bank of Dallas, existing wells in big shale areas can produce profit at U.S. crude oil prices of between $26 and $45 per barrel.
According to the survey, companies are also planning on drilling new wells between $61-$70 per barrel. Big offshore projects can also generate profits for much lower prices, between $40 and $50 per barrel.
The risk of overproduction will continue to increase if these producers maintain production.
There are certainly signs that drilling activity is slowing down in the U.S. Shale. According to Baker Hughes, the number of rigs operating onshore has decreased by 10% this year.
If the IEA oversupply scenario becomes reality, a larger correction will be required. Oil would need to fall to $50 per barrel for a prolonged period of time to force producers into a sharply reduced drilling activity.
President Trump – and U.S. customers – might be okay with it, but U.S. manufacturers and many OPEC member states would not.
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(source: Reuters)