US aims to contain Greenland fallout on market

Market: Crude oil, Natural gas
20/01/26

President Donald Trump's administration is rushing to stave off a potential trade war with Europe and its negative effects on financial markets, as the UK and EU have pushed back on his bid to annex Denmark's Greenland territory.

Trump has threatened to impose a 10pc tariff on US imports from the UK and seven members of the EU from 1 February, unless they agree to his demand for the US takeover of Greenland. The UK appears to rule out retaliatory measures, but EU leaders will meet on 22 January to agree on the bloc's response. The European parliament is preparing to freeze work on implementing laws for the EU-US trade deal agreed to last summer.

US stock and financial markets fell in Tuesday morning sessions. But US treasury secretary Scott Bessent, speaking at the Davos Economic Forum in Switzerland, urged his EU counterparts to desist from retaliatory measures. He blamed the downward trend in US financial markets on the contagion effect from a sharp fall in Japan's government bond markets on Monday.

"I tell everyone, 'sit back, take a deep breath, do not retaliate'", Bessent said at the forum. "The president will be here tomorrow, and he will get his message across."

Trump is scheduled to arrive in Davos on Wednesday to address the forum and hold meetings with EU leaders.

California governor Gavin Newsom (D), who is also at Davos, on Tuesday urged the European leaders to take a tougher stand against Trump. Newsom said his message to the EU leaders is to "get off your knees and grow a spine," adding that "there's no diplomacy with Donald Trump."

The White House has not released any details on how Trump's tariff threat against select EU members will be carried out and whether energy commodities will continue to be exempted from tariffs. So far there are no executive orders from Trump on implementing tariffs starting 1 February.

Bessent also defended Trump's designs on Greenland, reiterating the president's argument that the US needs to take over the island's security to prevent Russia and China from attacking it. Bessent asserted that "this has been in the minds of American presidents for more than 150 years".

The French foreign ministry on Monday said that the US explanation for needing to annex Greenland is the equivalent of arguing that "if there were a fire someday, firefighters would intervene — so better burn the house now."

By Haik Gugarats

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20/01/26

Venezuela moves cautiously to court investors

Caracas, 20 January (Argus) — Venezuela has replaced the controversial head of its investment promotion agency with a US-educated central banker and is eyeing legal reforms to power, oil and mining laws, all while continuing to consolidate power. US-educated Calixto Ortega will leave his post as head of Venezuela's central bank to lead its international investment agency (CIIP), a post previously held by accused money launderer Alex Saab , freed by the US in 2023 as part of a prisoner swap. The role of the agency is unclear as both Venezuelan law and sanctions from the US and other nations have limited international investment there. Ortega has worked as vice president of US refiner Citgo — ultimately owned by Venezuela — and lived in Houston, Texas, from 2009-2014, with degrees from Rice and Columbia universities in the US, according to his online profile. "His designation will allow the continued capture of national and international investment ... in this stage of economic recovery," interim president Delcy Rodriguez said in announcing the appointment Monday. The move follows Rodriguez's proposal to overhaul laws governing the oil, power and mining sectors to make them more attractive for investors, although few details have been released. Trump has called for energy investment in Venezuela in the wake of the US seizure of Rodriguez's predecessor Nicolas Maduro, but some oil companies have expressed reservations after decades of nationalization and insecurity. One pro-Maduro mayor in the coastal city of Lecheria, Anzoategui has offered his region to become the "energy hub" of Venezuela. The state is a top natural gas-producer in Venezuela and hosts part of the massive Jose petrochemical complex, although Lecheria has not traditionally been an energy center. Mayor Manual Ferreira has won his last three elections, but whether the central government will support his proposal is not clear. The proposed lower municipal taxes and other measures are meant to align with Rodriguez's new oil law, Ferreira said. But rather than outreach with regional governments, Rodriguez so far is aggressively centralizing power in her role, one non-governmental organization said, a dynamic that could undermine other investor assurances. She now holds five key positions in Venezuela: president, vice-president, oil minister, head of the Sebin intelligence service and head of governmental audit agency Sunai, the Venezuelan chapter of Transparency International noted. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US private firms on parade for Trump’s Venezuela push

19/01/26

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19/01/26

US private firms on parade for Trump’s Venezuela push

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IMF warns of major risk to growth from US-EU tensions

19/01/26

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19/01/26

IMF warns of major risk to growth from US-EU tensions

London, 19 January (Argus) — The IMF has upgraded its global economic growth forecast for 2026 but warned an escalation in trade tensions between the US and Europe is a "major risk." US president Donald Trump on 17 January threatened tariffs on several European countries in a bid to acquire the Danish territory of Greenland. This has raised concerns about a potential trade war between Europe and the US. "If we were to enter a phase in which there would be escalation and tit-for-tat policies… that would certainly have even more of an adverse effect on the economy, both through direct channels, but also through confidence, investment, and potentially through a repricing by [financial] markets," IMF chief economist Pierre-Olivier Gourinchas said at the launch of the IMF's World Economic Outlook Update (WEO) today. The IMF raised its global growth forecast for 2026 by 0.2 percentage points to 3.3pc, citing improvements in the US and China, and kept its projection for 2027 unchanged at 3.2pc. It puts 2025 economic growth at 3.3pc, from a previous 3.2pc. IMF forecasts are used by many economists to model oil demand projections. The IMF has repeatedly upgraded its growth projections since April 2025 and now sees 2025 and 2026 growth higher than when US-led tariff disruptions started in early 2025. The outlook's economic assumptions are current as of 31 December so do not take into account the US' latest tariff threat against European countries. It assumes an effective tariff rate of 18.5pc for US imports from the rest of the world. Any change to this would be a major risk," Gourinchas said. "This is something that could materially impact growth if we have higher levels of tariffs, if we have higher levels of geopolitical tension." The IMF said the US-led investment boom in AI and strong fiscal stimulus in China and Germany was offsetting economic losses associated with higher tariffs. But Gourinchas warned that debt financing in the AI sector was becoming more prevalent, and this could "amplify shocks if returns failed to materialise." He said any correction in AI stock market valuations would have far reaching negative effects or the global economy. The IMF said fiscal discipline is weakening across the globe, particularly in advanced economies. "The risk here [is] that countries will be unable to face the significant challenges ahead in terms of population aging, climate transition, national security or ability to support the economy, should a large shock occur," Gourinchas said. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US tackles protection of Venezuelan oil funds

19/01/26

News

19/01/26

US tackles protection of Venezuelan oil funds

Washington, 19 January (Argus) — US president Donald Trump's administration plans to protect future Venezuelan oil export revenue from seizure by US-based creditors, which hold billions of dollars in claims against Caracas and state-owned PdV. US actions have introduced a new twist in the years-long saga to auction off PdV-owned refiner Citgo as part of a court-mandated sale. An executive order Trump signed on 9 January extends a prohibition on seizing US-based Venezuelan property to the proceeds from sales of Venezuelan crude and other energy commodities. The US administration has said it plans to market Venezuelan energy commodities on behalf of Caracas with proceeds held in bank accounts controlled by the US treasury. US-facilitated sales of Venezuelan crude cargoes had netted $500mn as of 14 January, with additional sales "expected in the coming days and weeks", a US official said. Venezuelan crude cargoes sold under US-facilitated transactions are commanding higher prices than before the forced removal of the country's president, Nicolas Maduro, two weeks ago, US energy secretary Chris Wright says. Trump earlier this month made Wright responsible for managing the sale of 30mn-50mn bl of floating and onshore Venezuelan crude. Venezuelan interim president Delcy Rodriguez, whom Trump on 14 January described as a "terrific person" for her co-operation with US demands, would potentially be able to draw on at least some of those proceeds. But the US administration has not explained how it will disperse the funds. Washington since 2019 has blocked Venezuelan funds in the US, including its central bank reserves, nominally to deny access to Maduro. But this has also frustrated US oil producers, bondholders, mining firms and other companies, which have advanced claims against Caracas worth more than $25bn. The most advanced legal cases brought forward by creditors has resulted in a decision by the US District Court for the District of Delaware to sell Citgo for $5.9bn. ConocoPhillips has registered three claims totalling almost $12bn and could see some of them satisfied if Citgo is sold. But a US appeals court, which expects to take up a possible appeal against the Delaware decision and 22 other legal cases brought forward against Caracas, has asked the Trump administration whether the government change in Venezuela could influence the appeals process. The administration has yet to respond. Sympathy for expropriators Trump last year justified the US military build-up that culminated in Maduro's capture on 3 January by citing the need to restore the property of US companies that Venezuela had expropriated. But the Trump administration has asserted authority over Caracas following Maduro's ouster, and Trump now shows far less willingness to help US firms seek restitution. "We're not going to look at what people lost in the past, because that was their fault," Trump told ConocoPhillips chief executive Ryan Lance during a meeting with oil company chiefs at the White House on 9 January. Trump advised Lance to "write off" the $12bn expropriation claim, suggesting that "you'll make it back, one way or another". The possibility of future losses is a factor holding back large US firms, despite Trump's lobbying for them to resume business in Venezuela. "We've had our assets seized there twice," ExxonMobil chief executive Darren Woods told Trump on 9 January. "And so you can imagine to re-enter a third time would require some pretty significant changes from what we've historically seen here and what is currently the state." Trump two days later complained that ExxonMobil was "playing too cute". By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Australia's Central buys into two more gas basins

19/01/26

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19/01/26

Australia's Central buys into two more gas basins

Sydney, 19 January (Argus) — Australian junior gas firm Central Petroleum has confirmed that it will proceed with a plan to buy new acreage in Australia's onshore Otway and Cooper basins from domestic explorer ADZ Energy. Central will go ahead with acquisitions announced last month following conditions precedent being met, the firm said on 19 January. Central will buy 20pc of an exploration permit in the Otway basin owned by Victoria state, where drilling is planned for mid-to-late 2026 and 49pc of 24 retention leases and an exploration permit in South Australia (SA) state's Cooper basin. The SA block will be drilled in late 2026 and early 2027 with plans for two to three wells, Central said previously. Australian governments are trying to boost supply from southern basins due to increasing concerns about shortfalls of gas in latter years this decade, due to depletion from the Gippsland basin joint venture owned by ExxonMobil and Australian independent Woodside, which will take over operatorship this year. Central, a partner in Australian joint venture Mereenie, is focused on the onshore Amadeus basin in central Australia, where it holds operatorship and a 25pc stake. The company holds about 169,000km² of tenements in the Northern Territory where it largely produces gas for the government-owned Power and Water . By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US aims to contain Greenland fallout on market

Related news posts

Venezuela moves cautiously to court investors

Venezuela moves cautiously to court investors

US private firms on parade for Trump’s Venezuela push

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IMF warns of major risk to growth from US-EU tensions

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Australia's Central buys into two more gas basins

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