Brent futures rose $1.21, or 2%, to $61.17 per barrel at 11:17 a.m. EST (1617 GMT), while U.S. West Texas Intermediate crude gained $1.02, or 1.8%, to $57.01

International News via Reuters:

Oil prices rose about 2% on Thursday after two days of declines as investors assessed developments in Venezuela and on worries about supplies from Russia, Iraq and Iran.

Brent futures rose $1.21, or 2%, to $61.17 per barrel at 11:17 a.m. EST (1617 GMT), while U.S. West Texas Intermediate crude gained $1.02, or 1.8%, to $57.01.

The U.S. seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, one sailing under Russia’s flag, as part of U.S. President Donald Trump’s aggressive push to dictate oil flows in the Americas and force Venezuela’s socialist government to become an ally.

After capturing Venezuela President Nicolas Maduro in a Saturday military raid on Caracas, the U.S. is escalating its blockade of vessels that are under sanctions and going to and from the South American country, a member of the Organization of the Petroleum Exporting Countries oil producers group.

PRICES REVERT TO PRE-ATTACK LEVELS

“The complex is rebounding with the crude benchmarks back to about levels of last Friday’s close prior to the U.S. removal of Maduro,” analysts at energy advisory firm Ritterbusch and Associates said in a note.

“The fact that this major development is having little impact on the energy complex is not surprising since the arrival of a meaningful amount of Venezuelan crude into the (U.S.) Gulf coast region could be years away,” Ritterbusch said.

The U.S. could oversee Venezuela and control its oil revenue for years, Trump said in a New York Times interview published on Thursday. The U.S. Senate began voting on Thursday on a resolution that would block Trump from taking further military action against Venezuela without congressional authorization.

U.S. Energy Secretary Chris Wright said there was room to balance roles for both the U.S. and China in Venezuela to allow for commerce, but that Washington would not allow Beijing to have major control over the Latin American country.

In an interview on Fox Business Network, Wright also said he expected to see Chevron quickly grow its activities in Venezuela, with other U.S. oil majors ConocoPhillips and Exxon Mobil also looking to play a constructive role.

India’s Reliance Industries, operator of the world’s largest refining complex, on Thursday said it will consider buying Venezuelan oil if permitted for sale to non-U.S. buyers.

RUSSIA, IRAQ, IRAN AND YEMEN

A Russia-bound oil tanker suffered a drone attack in the Black Sea that prompted it to request Turkish Coast Guard assistance and divert from its course, according to a notice by Lloyd’s List Intelligence and a separate maritime security source on Thursday.

Maritime data specialist Lloyd’s List Intelligence said the Palau-flagged Elbus vessel “experienced an unmanned marine-vehicle and drone attack” on Wednesday targeting its engine room, and that no injuries were reported among the 25 crew, nor any pollution.

Ukrainian President Volodymyr Zelenskiy said on Thursday the text of a bilateral security guarantee between Kyiv and Washington was “essentially ready” to be finalised with Trump. 

Russia said on Thursday that any troops sent to Ukraine by Western governments would be “legitimate combat targets”, after Britain and France announced plans to deploy a multinational force there in the event of a ceasefire.

Any agreement that would lift sanctions on Moscow could allow Russia, the second-biggest oil producer in the world behind the U.S., to export more energy.

In Iraq, the cabinet has approved plans to nationalise operations at the West Qurna 2 oilfield, one of the world’s largest, as the government looks to avert disruptions stemming from U.S. sanctions imposed on Russian stakeholder Lukoil.

State-run Basra Oil Company will take over the oilfield’s operations for 12 months, two officials at the firm told Reuters.

In Iran, President Masoud Pezeshkian warned domestic suppliers against hoarding or overpricing goods, state media reported on Thursday, as Tehran rolls out high-stakes subsidy reforms during nationwide protests against economic hardship.

“Iran has a long history of protests, and there is no sign that the regime is on the verge of collapse. But depending on how the situation evolves, Iranian oil exports—equating to 2% of global supply (two times the level of Venezuela)—could be at risk,” said Pavel Molchanov, investment strategy analyst at Raymond James.

Iraq and Iran are among the biggest oil producers in OPEC behind Saudi Arabia.

In Yemen, the Saudi-led coalition said on Thursday that the United Arab Emirates (UAE), another big OPEC producer, had spirited a separatist leader out of the country by boat in a dramatic twist to a rift between the Gulf powers, as Saudi-backed forces advanced to the port of Aden after losing ground there.

The escape of Aidarous al-Zubaidi, head of a UAE-backed southern separatist group, could exacerbate tensions between Saudi Arabia and the UAE, global oil heavyweights and both close allies of the United States.

Reporting by Scott DiSavino in New York and Enes Tunagur in London; Additional reporting by Yuka Obayashi in Tokyo and Siyi Liu in Singapore; Editing by David Goodman, Kirsten Donovan, Rod Nickel

Warner Bros Discovery’s board on Wednesday rejected Paramount’s amended hostile offer that included a $40 billion in equity personally guaranteed by Oracle’s co-founder Larry Ellison

International News via Reuters:

Paramount Skydance on Thursday reiterated that its $108.4 billion bid for Warner Bros Discovery was superior to a rival deal from Netflix, saying the value of the cable spinoff central to the streaming giant’s offer was effectively worthless.

Warner Bros Discovery’s board on Wednesday rejected Paramount’s amended hostile offer that included a $40 billion in equity personally guaranteed by Oracle’s co-founder Larry Ellison, the father of Paramount CEO David Ellison, and $54 billion in debt. 

The CBS parent and Netflix have been in a heated battle for Warner Bros, its prized film and television studios, and its extensive content library that includes “Harry Potter” and the DC Comics universe.

Paramount’s argument – one it is using to sway investors – is that its all-cash $30-per-share offer for the whole of Warner Bros is superior to Netflix’s $27.75 a share cash-and-stock deal for the studios and streaming assets and will more easily clear regulatory hurdles. The Netflix deal is worth $82.7 billion.

In its response on Thursday, Paramount even went so far as to suggest that the cable properties of CNN and Discovery, which Netflix does not want, are effectively worth less than nothing, based on an equity valuation of the recently floated Versant Media, a Comcast spinoff that includes digital assets and TV channels such as CNBC. That stock has dropped 18% since its market debut on Monday.

That sour performance has given fresh ammunition to Paramount’s campaign to convince Warner Bros shareholders its offer is better. On Thursday, it said it values the Warner Bros cable spinoff at zero – or even less than that, due to its high leverage and lagging performance.

“While Discovery Global equity would have no equity value if the company trades in-line with Versant, there are in fact several compelling reasons why it should trade at a discount to Versant,” Paramount said Thursday.

Paramount said the Netflix offer would reduce the cash paid to shareholders if Warner Bros loads more debt onto the merger. The company argues the cash payout could drop to $20 per share, from the current offer of $23.25, if Warner Bros were to adopt the leverage in line with Versant. 

Warner Bros and Netflix did not immediately respond to requests for comment.

Shares of both Warner Bros and Netflix were down nearly 1% each, while those of Paramount ticked up 0.6%.

“It would be surprising if the shareholders were swayed by the argument because they’ve likely already considered the declining value of linear TV assets when they agreed to split the company and sell the growing portion to Netflix,” said Ross Benes, senior analyst at Emarketer.

“But Paramount has a point – fading TV networks aren’t appealing to most investors.”

Paramount’s tender offer will expire on January 21, but the company can extend it.

WARNER BROS UNCONVINCED BY ‘INADEQUATE’ PARAMOUNT BID

Warner Bros has argued that Paramount’s revised December 22 bid “remains inadequate”, citing uncertainty regarding the CNN parent’s ability to finalize the transaction, and the exposure of Warner Bros shareholders to significant risks and costs in the event of deal failure.

The board said Paramount’s offer hinges on “an extraordinary amount of debt financing” that heightens the risk of closing.

Netflix’s deal requires no equity financing and is backed by $59 billion in debt from banks including Wells Fargo, BNP Paribas and HSBC Holdings. 

Warner Bros Chairman Samuel Di Piazza has said the company is not currently negotiating with Paramount but is open to a deal if Paramount can “put something on the table that is compelling.”

Some Warner Bros investors, including the 7th-largest shareholder Pentwater Capital, have argued that the board was making a mistake not engaging with Paramount.

REGULATORY SCRUTINY

For either suitor, winning shareholder support is only the first hurdle for a deal that would face tough scrutiny by the antitrust regulators in the U.S. and Europe.

Bipartisan lawmakers have raised concerns about the potential harm for consumers and creatives and U.S. President Donald Trump has said he plans to weigh in on the deals.

Paramount’s bid will create a studio bigger than market leader Disney and fuse two major TV operators, which some Democratic senators say will control “almost everything Americans watch on TV”. 

It will also hand control of CNN to the conservative-leaning Ellisons, soon after they acquired CBS News and installed Bari Weiss as its editor-in-chief. 

The Ellisons have cited ties with the Trump administration as a reason why a deal with Paramount would face an easier regulatory path. 

For Netflix, a lightning rod in Hollywood over its streaming-first approach, the deal would cement its dominance with a combined 428 million subscribers. It has promised to honor Warner Bros’ theatrical commitments.

Netflix co-CEO Ted Sarandos has voiced confidence in winning approval, saying the company’s bid would be better for Hollywood as it would avoid job cuts in an industry already hit by fewer productions and uneven box-office returns. 

Reporting by Aditya Soni and Harshita Varghese in Bengaluru and Dawn Chmielewski in Los Angeles, additional reporting by Deborah Sophia and Anhata Rooprai; Editing by Sriraj Kalluvila

The bill approved by lawmakers in December was set to cut the former right-wing president’s prison term to just over two years

International News via Reuters:

Brazilian President Luiz Inacio Lula da Silva vetoed on Thursday a bill passed by Congress cutting former President Jair Bolsonaro’s 27-year prison sentence for plotting a coup after losing the 2022 election.

The bill approved by lawmakers in December was set to cut the former right-wing president’s prison term to just over two years. Congress can still override Lula’s veto.

The bill also reduced sentences for those convicted over their roles in a January 2023 riot, when Bolsonaro supporters invaded and ransacked the presidential palace, Supreme Court and Congress.

About 2,000 people were arrested over the attack, which drew comparisons to the January 2021 attack on the U.S. Capitol in Washington. Many of those in Brazil have been convicted by the Supreme Court of attempting a coup, among other crimes.

“All of the (coup plotters) were tried transparently and impartially, and at the end of the trial they were convicted on the basis of strong evidence,” Lula said at an event in Brasilia.

The leftist leader had already vowed to veto the bill in December. Bolsonaro began serving his sentence in November.

Reporting by Gabriel Araujo and Isabel Teles

The Western Balkan countries have seen disruption from snow and other winter weather since Sunday, with the closure of roads and railway lines, power cuts and drinking water affected

International News via Reuters:

A man was found drowned on Thursday in the Albanian city of Durres and emergency teams worked around the clock to evacuate dozens of people from flooded houses hit by heavy rainfall.

The Western Balkan countries have seen disruption from snow and other winter weather since Sunday, with the closure of roads and railway lines, power cuts and drinking water affected.

Emergency teams were using boats to evacuate villagers trapped in flooded houses in the area around other southwestern Albanian towns of Fier and Vlora, after the Viosa River rose to over 9 metres, the defence ministry said.

A 55-year-old municipal worker who went missing on Tuesday was found dead in a drainage canal in Durres, probably swept away by the current, according to the interior ministry.

The emergency services said they were working to remove water from around 800 homes and buildings, after sheltering around 300 people in the army and police facilities.

In neighbouring Kosovo, where vast areas of land have been flooded in the past days, the rain was replaced by snow on Thursday. Bosnia has also been hit by snow.

“It is very difficult to function like this, the streets are not cleared, especially for pedestrians,” said Armin Hasanovic, a resident of the Bosnian capital of Sarajevo.

The temperature of -14 degrees Celsius (7 degrees Fahrenheit) was recorded on Thursday morning in the Croatian capital of Zagreb, with meteorologists forecasting a new cold spell on Sunday with even lower temperatures.

Reporting by Florion Goga in Albania, Fatos Bytyci in Kosovo, Antonio Bronic in Zagreb, Amel Emric in Sarajevo, Writing by Daria Sito-Sucic; Editing by Alison Williams