Following a disputed election in Venezuela, over 100 employees at the state oil company PDVSA and other government entities have been forced to resign due to their political views. The government claims President Nicolas Maduro won a third term, but the opposition alleges fraud and claims victory for their candidate. This situation, described by workers and union leaders, could further exacerbate PDVSA’s chronic staffing issues and its already declining oil production.
Senegal, a newly established oil producer, has formed a commission to review and potentially renegotiate existing oil and gas contracts, aiming to ensure they are more beneficial to the country’s interests. The move comes after the new government criticized previous agreements as unfavorable, emphasizing the need for a fair share of the profits from the nation’s natural resources.
Wall Street closed higher on Friday, driven by positive economic data that eased recession concerns. The S&P 500 and Nasdaq 100 are on track for their best week since October 2023, marking their seventh consecutive positive session. Gold soared to a record high, driven by anticipation of potential Federal Reserve rate cuts. Oil prices dipped, however, as ceasefire negotiations in Gaza resumed.
Reliance Industries, an Indian conglomerate, has received permission from the United States to resume oil imports from Venezuela. This comes after the US re-imposed sanctions on Venezuela’s oil sector in April. Reliance was a major buyer of Venezuelan crude before the initial sanctions in 2019 and had been seeking authorization to resume imports since then. The news was first reported by Bloomberg.
Ukrainian President Volodymyr Zelensky announced that Ukraine has successfully targeted more than 30 Russian oil processing and storage facilities. This escalation in attacks on Russian oil infrastructure aims to disrupt fuel supplies to the Russian military and cripple Moscow’s funding for the war in Ukraine.
Energy stocks declined in the lead-up to Wednesday’s market open, with Commerzbank observing that geopolitical developments continue to influence risk premiums. The oil market’s subdued response to Iran’s attack on Israel was also noted as a factor.
