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CANADA CRUDE-Western Canada Select trades at steepest discounts ever since March
The difference between the West Texas Intermediate benchmark futures and Western Canada Select futures, which is North American benchmark, has narrowed slightly on Thursday. However, it remains larger than ever before. CalRock reported that WCS for Hardisty, Alberta delivery in January settled at $12.85 per barrel, which is lower than the U.S. benchmark WTI. This compares to $13 Wednesday. The WCS discount on increased Canadian oil production has recently increased after spending most of the year in historically tight levels. This is largely due to the Trans Mountain expansion pipeline which has provided additional export capacity for Canadian oil producers. According to government statistics, the oil-producing province Alberta has set a record for production in 2024 with an average of 3.98 million barrels per day. The first 10 months of the year 2025 have been 3.8% higher than the same period of last year. * Oil prices fell globally on Thursday as investors waited for the Federal Reserve's interest rate cut. Meanwhile, the stalled Ukraine talks dampened expectations that a deal would be reached to restore Russian oil supplies. (Reporting from Amanda Stephenson, Calgary; Editing done by Maju Sam)
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Brazil 2026 Budget Sponsor proposes $1.9 Billion Exclusion for State-run Firms' Fiscal Target
Gervasio maia, the Brazilian congressman who sponsored the bill on budget guidelines for 2026, proposed to exclude up to 10 billion reals ($1.9 billion) of next year's fiscal goal for state-owned enterprises. According to Maia’s amendment, this amount will cover the expenses of companies that have an active and approved economic-financial plan. The proposal gives President Luiz inacio Lula da Silveira fiscal flexibility. It comes at a time when the postal service Correios is facing a cash crisis. Last month, it approved a restructuring program as its losses soared this year. This raised doubts over the viability of state-run Correios. The company reported a loss for the year to date of 6 billion reals ($1.13 billion), nearly three times the amount reported a year ago. The government has to compensate state-owned companies when they exceed their fiscal targets. This often means freezing federal spending. This is what happened with this year's Budget, when the government in November approved it. It was necessary to offset the 3 billion reais deficit that had been expected at state-owned firms due to Correios’ troubles. Maia removed from her proposal a clause on compensation. This effectively prevents the government from implementing it in the event that state-owned companies miss their targets next year. After the bill was passed, the change to the budget proposal for 2026 was announced ahead of the joint session of the Congress on Thursday. Committee approval is expected to be made on Wednesday. Correios stated earlier this week that the Treasury Blockage It was prevented from taking out a loan of 20 billion reais (3.67 billion dollars) from a bank consortium with a guarantee from the government because the interest rates exceeded the limit for deals backed by the state. ($1 = 5.3048 reales) ($1= 5.3133 reales) (Reporting and editing by Diane Craft; Marcela Ayres)
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Irish media reported that drones were spotted near Zelenskiy's flight path from Dublin.
Local media reported that an Irish navy ship saw up to five drones near the flight path for Ukrainian President Volodymyr Zelenskiy as he arrived in Ireland on Monday to make a state visit. Irish Times reported that the sighting caused a major alert due to fears of an attempted interference with the flight path. The Irish Times cited unnamed sources who said that the aircraft was not in danger, despite its arrival a little early. The Ukrainian delegation arrived on Monday late and left late the following day, as part of an effort to drum up support for Kyiv in Europe as Russia continues its war against Ukraine. Recent drone flights in Europe have disrupted airspace operations. Their origin is mostly unknown. Ursula von der Leyen, President of the European Commission, has called these incursions hybrid warfare. The Journal website first reported that drones were spotted at Dublin Airport. They said they arrived at the exact location where Zelenskiy’s plane had been expected to be, at the exact time it was due to pass. The authorities said they were conducting investigations to determine if the drones had taken off from a ship or landed on land. Both news outlets reported that they were first seen northeast of Dublin at a distance of around 20 km (12miles) from the airport. Ireland's Defence Forces stated that it could not comment on any specifics about any alleged incident for operational security purposes. A spokesperson stated that "however, the Defence Forces' support to An Garda Siochana's (police) security operation was successfully deployed by multiple means, ultimately leading to a successful and safe visit,"
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US investigations report that Waymo's self-driving car illegally passed 19 school buses in Texas
The U.S. government said Thursday that it had asked Waymo for more information after Texas officials claimed that Alphabet's self-driving cars had passed school buses illegally 19 times since the beginning of the school year. In October, the National Highway Traffic Safety Administration launched an investigation after an incident that occurred in Georgia. A Waymo was not stationary as it approached a school bus while its red lights were flashing and its stop arm was deployed. The Austin Independent School District posted a letter on November 20, 2018 by the NHTSA. In the letter, they stated that five incidents had occurred in November following the announcement from Waymo that it had updated its software to fix the problem. They asked the company not to operate around schools at pick-up or drop-off hours until it was able to ensure the vehicles wouldn't violate the law. Waymo didn't immediately respond to an inquiry for comment. A lawyer for the district wrote: "We cannot let Waymo continue to endanger our students as it tries to fix the problem." Citing an incident in which a Waymo was "recorded" driving past a school bus that had stopped only moments after the student who crossed in front, while still on the road, had been in front of the vehicle. A spokesperson for the school district did not respond immediately to whether Waymo had met this request. NHTSA was prompted by the letter to ask Waymo if it would comply to the request that self-driving vehicles cease operations during pick-up or drop-off hours for students. They also asked: "Was a software fix developed or implemented to mitigate this concern?" If so, will Waymo file a recall to fix the problem? In a letter sent to Waymo by the NHTSA on Wednesday, it demanded answers to questions about school bus incidents and software updates that address safety concerns. David Shepardson is reporting.
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US investigations report that Waymo's self-driving car illegally passed 19 school buses in Texas
The U.S. government said on Thursday that it had asked Waymo for more information after Texas officials claimed that Alphabet's self-driving cars had passed school buses illegally 19 times since the beginning of the school year. In October, the National Highway Traffic Safety Administration launched an investigation after a Georgia incident where a Waymo failed to remain stationary as it approached a school bus that had its red lights flashing with a stop arm deployed. In a letter published by NHTSA on Nov. 20, the Austin Independent Schools District stated that five incidents had occurred in November, after Waymo claimed to have made software updates to fix the problem. The district asked the company to stop operations near schools at pick-up or drop-off hours until it could be ensured the vehicles wouldn't violate the law. Waymo didn't immediately respond to an inquiry for comment. David Shepardson reports.
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Sources: Deutsche Bahn will return to profitability this year and next.
According to sources close the company, Deutsche Bahn will return to profitability this year and next, despite its underinvestment in trains and delays. After more than a decade underinvestment by the state-owned Deutsche Bahn, it has begun upgrading its tracks and overhead lines, as well as cutting administrative costs. This has led to major delays and cancellations across the country. Positive outlook is also a result of CEO Evelyn Palla's task to turn the company around. She took over on October 1. Palla will present her restructuring plan for the company at a meeting of the supervisory board scheduled to take place on Wednesday. Significant job cuts are expected. Deutsche Bahn has declined to comment. Sources said that the company expects a slightly positive profit before interest and tax (EBIT) in 2025 after a loss last year of 388 million euros. EBIT is expected to reach 500 million euros by 2026. The German Bahn also aims at reducing its net loss from 820 million euros to 180 million next year. Revenues are expected to stay stable, around 28 billion euro next year.
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Senators in the US want airlines to compensate passengers for delays with cash
A group of Democratic Senators introduced legislation on Thursday that would require airlines to compensate passengers for significant delays with cash. Mark Kelly, Ed Markey, and Richard Blumenthal, senators who are leading the charge, propose to mandate compensation that is in line with European Union (EU) and Canadian requirements. This includes mandating a minimum of $300 for delays of over three hours, and a minimum of $600 for delays of six hours or longer. This proposal was first reported on by after President Donald Trump's administration withdrew his predecessor's plan to force airlines to compensate passengers for flight delays caused by carriers. Kelly said that airlines must be held accountable for their actions when they leave travelers stranded and cost the American public money. "We are working to protect passengers so that they don't have to pay for cancellations or delays out of pocket." The U.S. Transportation Department, under the then-President Joe Biden in December 2024 sought public comments on writing rules that would require airlines to pay up to $775 per hour for delays exceeding three hours domestically. Airlines for America (a trade group that represents American Airlines, Delta Air Lines and United Airlines) had previously criticised Biden's plan for cash compensation, claiming it would increase ticket prices. USDOT stated last month that the rule would create "unnecessary regulations burdens," which is why it wouldn't go forward. In the United States, airlines are required to refund customers for cancelled flights but not compensate them for delayed flights. All four countries - the European Union, Canada and Britain - have rules on airline compensation for delays. No major U.S. airlines currently guarantee cash compensation for flight delays. USDOT announced in September that it would consider rescinding the Biden regulations, which required airlines and ticket agents disclose service fees along with airfares. The Trump administration plans to also reduce regulatory burdens for airlines and ticket agents. This will be done by writing new regulations that define a cancellation of flight, which entitles the consumer to a refund. It will also revisit rules regarding ticket pricing and advertising.
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Mercuria's copper takeover from LME Asia increases supply anxiety
Four sources with knowledge of the matter have confirmed that commodity trader Mercuria plans to remove significant quantities of copper from London Metal Exchange storage facilities in Asia. Prices are rising on account of expectations of a shortage. LME copper prices reached a record of $11,540 per metric ton Wednesday, partly because of anticipated shortages in the coming year due to disruptions to mine supplies including accidents and incidents in Indonesia and Chile. Mercuria, a Swiss company, has cancelled or designated for delivery over 40,000 tonnes of copper stored in LME facilities in South Korea. Taiwan Sources familiar with the situation say that copper was discovered on December 2. The value of copper at current prices would be $460,000,000. Mercuria declined comment. The LME approved warehouses that store copper for the construction and power industries have historically low inventories, which has contributed to an increase in prices in recent months. Copper is a major export from the LME, and prices in the United States are high. This is despite the fact that copper has been exempted from the import tariffs which came into effect on August 1. On December 2, the total amount of copper warrants that were cancelled - documents that confer ownership - was 56,875 tonnes or 35%. LME stocks Mercuria's action helped to boost the premium for cash copper contracts over the three-month ahead price . On Wednesday, premiums, which have been on an upward trend since November, reached $88 per ton, the highest level since October 13. Comparatively, a contango or discount of around $35 was offered on November 19, Last year, the premium per ton was around $38. As the settlement date of December 17 nears, traders expect even higher premiums on cash contracts. Companies with short positions must find copper in order to fulfill their contracts against them or roll them over - a process known as a "short squeeze". According to industry sources, cancellations are more frequent in contango markets where the prices of contracts with longer dates are higher than nearby contracts. It is rare to cancel warrants in a backwardated market, as the premium is usually intended to encourage deliveries at the LME.
Trump's attack on offshore wind has a knock-on effect for US shipbuilders and ports
Shipbuilders and port operators in the United States are suffering from the fallout of President Donald Trump’s campaign to eliminate the offshore wind industry. They have lost hundreds of millions in government support and seen their vessel orders disappear. Their investments worth billions of dollar's now face an uncertain future.
This is an unintended result of Trump's offshore wind policy, which includes stop-work orders for large projects and permit reviews that were sparked by former president Joe Biden’s green investment policies.
Trump says offshore wind is an ugly and inefficient technology which harms birds and whales. He is a strong supporter of U.S. marine industries, which he sees as vital in the global race for trade dominance and military dominance on the high seas.
Joe Orgeron is a Republican Louisiana State Representative and former owner of an offshore vessel company. He said that the offshore wind industry had been responsible for many ship purchases in recent years. "Unfortunately, that all came to an abrupt halt."
The details are revealed here for the very first time.
The Department of Transportation has canceled more than 679 million dollars in funding for ports that support offshore wind. This includes a grant of $34 million for an installation in Salem Massachusetts, which was supposed to generate 75 million dollars in tax revenue in 20 years and 800 jobs.
According to Oceantic, the trade group, orders for new offshore service vessels, designed to transport workers and enormous turbines offshore, or to lay underwater cable, have also vanished. This follows a busy year in 2024, which saw at least ten U.S. vessels launched to serve offshore winds.
According to the report, existing vessels are being sold or redeployed to other regions around the world.
Trump's administration has said that it can revitalize the U.S. port and shipbuilding industry without offshore wind support. The industry had suffered for years from cost inflation and a lack of government support.
The U.S. Department of Transportation stated that "this administration will restore America’s maritime dominance" by modernizing ports and expanding shipbuilding capabilities to compete with communist China.
We're doing it quickly and as cost-effectively possible - two attributes that are completely absent from offshore wind manufacturing."
BIG CANCELLATION Danish shipping company Maersk cancelled a $475-million contract for a ship custom designed to install massive wind turbines on the Empire Wind Power Project off the coast of New York earlier this month, revealing the decline in vessel demand.
Empire Wind, a project of Equinor, was embroiled earlier this year in Trump's opposition against offshore wind when the administration issued an order to stop work that delayed construction for one month.
Seatrium in Singapore, the shipbuilder, was said to be evaluating options for the vessel which was almost completed and that it could take legal actions.
According to Oceantic Network, the growth of offshore wind in the Northeast has fueled a strong demand for such vessels. This includes several that were built in U.S. yards or flown under U.S. national flags. The group said that the offshore wind sector has benefited from $5.1 billion worth of port investments, and $1.8 billion worth of vessel orders.
Among these vessels is the 715 million dollar Charybdis. It is the only vessel with a U.S. flag that is used to install wind turbines. This vessel is currently working for Dominion Energy on its Coastal Virginia Offshore Wind Project.
Edison Chouest, a Louisiana-based company, also built two large offshore worker housing vessels for Equinor's and Orsted's projects that are currently being constructed.
The work has dried up.
US Wind, an offshore wind developer, said in court documents that were filed this month that it was on track to obtain specialized vessels for the installation of offshore wind. However, efforts by the Trump administration to stop their Maryland project disrupted those plans.
The company stated that such vessels are rare and often booked many years in advance. This means early action is needed to meet the construction deadlines.
Blount Boats of Rhode Island, which started building crew transfer boats for offshore wind energy in 2016, has stopped production completely.
Julie Blount, Executive Vice President, said: "We have moved on." There are no contracts on those boats because the Trump Administration has shut that down.
Some existing offshore wind vessels are also being sold.
Houston-based Seacor Marine said in August that it would sell to Nigerian oil-and-gas services company JAD Construction two liftboats with U.S. flags, used at the Block Island offshore wind farm and South Fork offshore turbine farms. The company cited delays and cancellations as reasons for its decision.
Seacor has not responded to a comment request.
Other ships are facing uncertain futures. Bill Hanson, of Great Lakes Dredge & Dock Corp., stated that the $200 million Acadia - America's first ship for rock installation - will work overseas once it has completed jobs for Equinor or Orsted.
The company does not plan to build any more offshore wind vessels.
Ports Reeling Too
Oceanic estimated that last year, more than twenty U.S. port cities were involved in offshore wind projects. The DOT canceled grants totaling $679 million worth of funding in August. This affected projects in Massachusetts, New York and California as well as Maryland and Virginia.
Salem's port project, which is suffering after funding was cancelled, is in trouble.
According to Chris Mikkelsen, Executive Director of the Humboldt Bay Harbor, Recreation and Conservation District, in Northern California, it is anticipated that the Humboldt Bay Offshore Wind Port, which lost $426.7 Million - the majority of the canceled DOT funds - will be delayed for at least five years, to 2035.
The project hopes to use funds from the state climate bond in order to compensate for lost federal funding.
Norfolk, Virginia economic development officials said that the developer of a marine logistic terminal, which lost a $39m DOT grant, submitted a revised project proposal refocusing it away from offshore winds to align the project with the administration's priority.
Some port projects continue to be undertaken. According to a spokesperson for Equinor, the South Brooklyn Marine Terminal that will support its Empire Wind Project is 70% completed and has employed approximately 3,000 workers.
US Wind in Maryland says that it will continue to build a steel manufacturing facility on the shore that would serve shipbuilding and energy industries, despite the cancellation of the $47.4m port grant as well as the plans by the administration to revoke its permit for offshore wind. US Wind also warned that it might face bankruptcy if the project was canceled in court documents.
Jim Strong, of the United Steelworkers, which has an agreement to supply workers for US Wind’s facility, expressed optimism that Trump will see how offshore wind investments can have a ripple effect on industries that are important to him.
Strong, speaking of Trump, said that Trump had shown a great deal of passion when he spoke about steel during his campaign. I want to believe there will be a shift in positions once the story has been told. (Additional reporting from Lisa Baertlein, Los Angeles; Editing done by Richard Valdmanis & Marguerita Choy).
(source: Reuters)