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The judge rejected the Trump administration's bid to dismiss the California high-speed rail lawsuit
A?U.S. A?U.S. The U.S. district judge in Sacramento, Dale Drozd, rejected the Justice Department's argument that the lawsuit filed by the California High-Speed-Rail authority in July was filed in the wrong venue and should have gone to the?U.S. Court of Federal Claims. The state agency that is responsible for the development of the high-speed railway system filed a lawsuit challenging the cancellation of the grant as "arbitrary and capricious". After cancelling $4 billion of federal grants, the Transportation Department in August canceled an additional $175 million for projects that are part of California's high speed rail project. The department did not respond immediately to a comment request. California Governor Gavin Newsom is a Democrat and a vocal critic of President Trump. The funding cuts are the latest obstacle in the 16 year effort to connect Los Angeles and San Francisco with a 3-hour train ride. This project would provide the fastest passenger rail service available in the United States. California voters approved the first $10 billion bond in 2008. Since then, more than 50 major structures have been built, including bridges. The California High-Speed Rail Authority announced in November that it would be seeking proposals for a plan worth $3.5 billion to build high-speed rail systems and track. The route was originally supposed to be finished by 2020, at a cost of?$33 billion. The projected cost has increased from $89 billion to more than $128 billion. Service is now anticipated to begin?by 2033. The state challenged a previous decision by Trump to revoke federal grants worth $929 million during his first presidential term in 2019. This led to a settlement under Democratic President Joe Biden in 2021, which restored the full amount.
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US lawmakers and NTSB claim military helicopter proposals would make skies unsafe
Bipartisan senators, including the National Transportation Safety Board's chairperson, criticized the provisions in the annual defense bill released this week that dealt with military helicopter safety. Jennifer Homendy, Chair of the NTSB, said that the proposal would "make" the skies less safe. She called it an "unacceptable risk" to the flying public as well as to crews on commercial and military aircraft and residents in the area. This is a major, significant safety setback." The Washington aviation safety has been questioned after the collision on January 29, between an American Airlines regional plane and an Army Black Hawk helicopter, which killed 67 people. The Army Black Hawk helicopter crashed because it was above the maximum altitude and not broadcasting ADSB, an advanced aircraft tracking technology. The Federal Aviation Administration banned the Army's helicopter flights near the Pentagon after a close call last May. Homendy called it a "whitewash on safety" and said that she couldn't guarantee the?safety in Washington airspace should the proposal become law. "I couldn't assure anyone." She said, "I would not say that this guarantees safety." Senate Commerce Committee chair Ted Cruz, a Republican along with Maria Cantwell and the top senators of an aviation subcommittee – Jerry Moran, and Tammy Duckworth – said in a statement that the proposal “protects the status quo” by allowing military aircraft flying in DC to continue to do so under outdated transmission rules. The bill does not specify what type of alerts should be broadcasted to commercial aviation aircraft nearby. Defense Department can waive this requirement, if they have completed a risk analysis and addressed the risks to commercial aircraft. After the collision, senators announced bipartisan legislation. The bill would require aircraft owners to equip their fleets by the end of 2031 with ADS-B and other safety reforms. The language of the defense bill is also opposed by the families of those who died in the collision on Jan. 29, 2009. The bill does not address the coordination and visibility failures that led to the tragedy. It also calls for "real and enforceable visibility standards" for all military aircraft flying near civilian traffic.
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Venezuela doubles discount on oil sold to Asia because of flood of sanctioned crude
Oil buyers from Asia are demanding steep discounts on Venezuelan oil due to the flood of sanctions-free oil coming in from Russia and Iran, and the increased risk of loading the crude in South America as the U.S. increases its military presence in the Caribbean. On Wednesday, President Donald Trump stated that American authorities A tanker was seized Connected to Venezuelan oil shipments. Venezuela managed to increase its oil exports from 2024 levels this year, despite increased pressure by Washington on President Nicolas Maduro. According to data and documents on ship monitoring, the U.S. Military had not stopped oil flow from the country prior to Wednesday's announcement. U.S. Navy struck suspected drug-smuggling boats in the Caribbean Sea, and Trump's administration threatened to expand military operations to include land targets. The state-run PDVSA is trying to prevent a decline in oil revenues by increasing export volumes. According to traders and company sources, the low global crude prices are affecting Venezuela's heavy grades of crude oil more than usual due to U.S. sanction and poor quality. State oil company still struggles to keep the country's pocket full. China, the top Asian buyer, is being flooded with crude from rival countries that have been sanctioned. PDVSA was forced to cut prices in order to move its product, according traders. The discount under Brent crude is about twice as high as it was a year ago. One person said that PDVSA has little negotiation power. It has had to reduce prices as shippers are more willing to take higher risks in order to load at Venezuelan ports near where U.S. military vessels are anchored. In recent weeks, with Russian and Iranian supplies being sold at steep discounts, Chinese buyers were barely interested in Venezuela's Merey heavy crude, which was priced $14 below Brent. This is according to a trader who sells to independent Chinese refiners. Another trader reported that a cargo of the same Venezuelan grade, for delivery in early 2026, was sold at $15 per barrel less than Brent. Late last year traders reported that they applied discounts between $5 and 8 per barrel lower than Brent for Venezuelan heavy oil to be delivered in China. Venezuela's Maduro depends on oil revenues to maintain subsidies and government programmes to minimize domestic chaos and deal with mounting U.S. pressure after a 2024 disputed election. China is the recipient of between 55% to 90% of Venezuelan oil exports this year, up from 40%-60% in 2010. According to data from ship monitoring, in November, Venezuela sent 746,000 barrels of oil per day to China. PDVSA has not responded to a comment request. Venezuela's Oil Minister Delcy Rodriguez announced last week that oil production rose to 1,17 million bpd from 1.13 million bpd during the preceding month. Caution is advised when using ports. The country's oil imports have more than doubled, to 167,000 bpd, and the exports are slightly higher at 921,000 bpd. This is the third highest monthly average of this year. PDVSA and Chevron's joint ventures increased their crude oil exports from the U.S. last month to around 150,000 bpd, up from 128,000 in October. They also supplied naphtha for diluting extra heavy crude produced by its joint ventures. Documents show that the?country's imports of naphtha, including those from Russia, allowed PDVSA maintain high diluent stock levels to ensure stable exports for crude blends over the next?months. The cost of shipping Venezuelan crude oil to any destination has increased as the vessel owners have included "war clauses", which protect them against delays, interruptions and potential seizure by U.S. naval ships near Venezuelan shores. A "war clause",?included in a contract, allows shipowners to avoid routes and obligations if they face war risks. This is done by allowing safe discharge at alternate ports, charging extra freight fees or cancelling voyages when the conflict zone is at risk. Sources said that while the clause may not always entail a substantial cost for shippers who cover short routes to the U.S. and Caribbean, it can increase freight costs on longer routes to Asia. This could force PDVSA's price discounts to be increased to accommodate the clause.
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Cyprus and Malta say that if Russia is a bad actor, it shouldn't affect the legitimate maritime sector.
Cyprus and Malta, two key EU shipping nations, said that discussions on the 'need to tighten sanctions against 'Russia, including a possible blanket -ban on maritime services, shouldn’t be done at the expense legitimate businesses. Exclusively reported on December 5, the Group of Seven and the European Union were in discussions to replace the price cap on Russian oil with a complete ban on maritime services in order to reduce the revenue from?oil that is used by Russia in Ukraine. Cyprus, Malta and Greece, which together have the largest fleets in the EU, say that tightening sanctions shouldn't target bona-fide maritime businesses. "There must be a holistic strategy," said?Cypriot foreign minister Constantinos Kombos. He stated that although additional pressure was needed on Russia, the focus should be also placed on sanctions dodging. He said, "There are many actors involved in this and it undermines our collective efforts." (Reporting and editing by Chris Reese, Nick Zieminski and Jonathan Saul; Reporting by Michele Kambas and Jonathan Saul)
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Lazard's CEO: A Washington strategy is now essential for getting deals done
Peter Orszag, CEO of Lazard, said that dealmakers "need to have a Washington White House or Cabinet level strategy" in order to complete transactions. Orszag, speaking at a Goldman Sachs Conference in New York said that the regulatory environment is more tolerant than before. He also noted that it was more political. Orszag said that it was no longer enough to discuss changes in a competitive market with staff from the Department of Justice and the Federal Trade Commission. "That must be'supplemented or complimented with a White House level or Cabinet strategy. "More is possible but also more nuanced about how to get things done in Washington," he said. Orszag warned that a lack of understanding about the politics could lead to a deal never being "anywhere close" to completion. Orszag says he regularly travels to Washington, and relies upon advisers for political insight on deals. Orszag mentioned former U.S. Congressman Patrick McHenry who was hired by Lazard earlier this year. Netflix's battle with Paramount Skydance over Warner Bros Discovery is the latest example of a deal that has political undertones. Donald Trump said that he would be a part of the deal. The Paramount bid is financed by Jared Kushner, Trump's son in law, and Affinity Partners. It also includes Saudi Arabian and Qatari sovereign funds. Trump is also working on a solution to the TikTok business in the U.S. as well as selling ports owned by China’s CK Hutchison. In the $22.8 'billion ports deal that is intertwined with Sino-U.S. tense, CK Hutchison will sell 43 ports, including two near Panama Canal, in 23 countries to a group headed by BlackRock, an investment firm, and shipping company?MSC. Trump has called on the U.S. "to take back" the Panama Canal. DEALS LOOK BRIGHT Wall Street's top executives are confident in the outlook for dealmaking, stating that the increase in activity in this year will lead to a bumper year in 2026. Private equity firms have also returned to the market following a long period of slowdown on new deals and exits. Orszag agreed. He said: "It appears that the private equity sponsors are going to become more active as a result of their need to return more cash." Lazard's restructuring and liability management practices are expected to continue their strong performance in the coming year. He said, "We think that restructuring liability management will continue to be active, you know, through 2026 and beyond." Investment bank exceeded third-quarter profits estimates in October, as dealmaking increased. This was similar to gains made by larger Wall Street competitors. (Reporting by Manya Saini in Bengaluru and Tatiana Bautzer in New York. Mark Potter edited the article.
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Ukraine disables shadow fleet vessel in Black Sea with sea drones
A Ukrainian official reported that Ukrainian drones disabled a tanker trading Russian oil on Wednesday as it sailed through Ukraine’s exclusive economic zone (EEZ) in the Black Sea towards the Russian port of Novorossiysk. This is the third drone attack in two weeks against vessels of Russia's "shadow fleet", which Kyiv claims are unregulated ships that help Moscow export large amounts of oil to fund its war?in Ukraine, despite Western sanctions. As the conflict in Ukraine spills over into sea lanes, insurers are reviewing policies daily. An official with the Security Service of Ukraine stated that the Dashan tanker had been sailing at top speed, without its transponders, when powerful explosions struck the stern of the vessel. This caused critical damage to the vessel. He did not mention any possible injuries. WESTERN SANCTIONES AN ARCTIC TANKER Three maritime security sources confirmed the strike on the Dashan. The Dashan is under sanctions from both Britain and Europe and sails without a known registry. Russia has not yet commented on the incident. Video footage from an official revealed that the drones were seen flying towards the tanker, followed by powerful explosions when they arrived. The official said that the SBU is continuing to take active steps to reduce the petrodollar revenue to the Russian budget. The shadow fleet has been put out of service three times in the last two weeks. It is believed that the tankers were helping the Kremlin to circumvent international sanctions. Last week, Russian President Vladimir Putin threatened to cut off Ukraine's Black Sea access in response to attacks on oil tankers that he referred to as "piracy". Ukraine has been using drones to strike Russian oil refineries from behind the frontlines of Moscow's conflict with Ukraine. The attacks on the tanks represent a new line of attack. Since December 2024, there have been at least seven explosions on other tanks that visited Russian ports in locations such as the Mediterranean. Sources in maritime security say that Ukraine is suspected to have carried out these attacks, using limpet-mines. However, Kyiv did not confirm or deny any involvement. Reporting by Tom Balmforth, Jonathan Saul and Alison Williams Editing by Gareth Jones and Alison Williams
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Energy Transfer expects Lake Charles LNG investment to be approved in early 2026
Energy Transfer, a U.S. pipeline company, has secured enough agreements to sell liquefied?gas for it to make a final investment decision about its Lake Charles LNG Project early next year. An executive stated this on Wednesday during the Energy Live conference in Houston. Energy Transfer is developing a?LNG facility in Louisiana with a capacity of 16.5 million metric tonnes per year. Last month, it said that 80% of the project would be sold to equity partners. Amy Chen Davis, vice president at Lake Charles LNG, stated that the marketing aspect of the project was the most uncertain. However, the work has been completed and Energy Transfer now has enough volume to make the final investment decision in the early part of next year. Davis said she wasn't overly worried about the possibility of an?oversupply in?LNG? because lower prices can often lead to a higher demand. She said, "We can't undervalue the power of supply catching up with demand." Sheila Dang, Houston Reporting Editing by Nathan Crooks & David Goodman
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US Senator says FAA administrator failed divest airline stocks
The Senate Commerce Committee's top Democrat said that the Federal Aviation Administration chief failed to divest a?his holdings in Republic Airways, in violation of an ethics agreement. U.S. Senator Maria Cantwell from Washington stated that FAA Administrator Bryan Bedford who was previously CEO of Republic Airways had agreed to sell his holdings in 90 days after confirmation. Bedford, at the time of confirmation, reported owning stock in Republic Airways worth between $6 and $30 million. It appears you have retained significant equity in the conflicting asset for months after the deadline set to divest fully from Republic. This is a violation of your ethics contract. Cantwell stated that this is "inacceptable" and demanded a full account. Bedford, according to the FAA, will directly respond to Cantwell. Cantwell released a letter dated December 8, 2008, from the Office of Government Ethics. The letter stated that Bedford had "not complied" with the ethics agreement and had requested an amendment for the extension of the divestiture period of the last conflicting asset: Republic Airways. The ethics office stated that the request was not up to standard. The office stated that it was not informed of Bedford's divestment. The U.S. Department of Transportation was asked to emphasize to Bedford that "it is his responsibility to avoid any action which could create a conflict of interest in his 'holdings. Republic completed its merger on November 25 with Mesa Air Group. According to the merger agreement, Republic stockholders will own about 88% of the combined stock. Cantwell stated that the company has the largest Embraer fleet in the world, with 310 'E-Jets. Cantwell's letter stated that it was unclear whether the merger would increase the value of the shares you owned in Republic, which you were required to sell before the merger closed. Cantwell is asking Bedford if he plans to sell all of his airline shares. He also wants a list of everything he has been disqualified from because of this holding.
Urals oil prices unchanged after CPC attack, but Kazakhstan diverts oil to China
The Russian Urals crude differentials remained unchanged on Wednesday. Kazakhstan, however, diverted some oil from the Caspian pipeline consortium?pipeline?in December due to a decrease in the route’s capacity.
Kaztransoil, the oil pipeline operator in Kazakhstan, announced on Wednesday that the country would divert certain volumes of oil from the Caspian Pipeline Consortium network damaged to other routes such as China.
Kazakhstan will increase its oil supplies to Russia and the Baku, Tbilisi, Ceyhan pipeline by 58,000 tonnes this month as compared to initial plans.
A source in the industry said that a drone strike by Ukraine on a Black Sea export terminal had disrupted oil flows.
PLATTS WINDOW
* According to traders, no bids or offers for Urals, Azeri BTC, and CPC Blend were made on Wednesday.
A Ukrainian official reported that Ukrainian drones struck and disabled a tanker trading Russian oil on Wednesday as it sailed through Ukraine's exclusive zone of the Black Sea, to the Russian port Novorossiysk. (Reporting and Editing by Nia William)
(source: Reuters)