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Crude hits year low on speculation Libyan output will resume

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Crude hits year low on speculation Libyan output will resume

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Oil prices fell to their weakest levels this year following a report that Libya may shortly restore full production, adding to fears that weak global demand will create an oversupply on the market.

Brent crude, the international benchmark, fell as much as 5 per cent to $73.67 on Tuesday, its weakest level since December and the first time it has slipped below $75 since January. The US equivalent, WTI, slid by 4.5 per cent to $70.25.

The drop in prices came after Bloomberg reported that Sadiq al-Kabir, the central bank governor at the centre of a dispute between two rival factions, said there were “strong” indications of a compromise.

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Investors fear that Libya, which shut down around 60 per cent of its $1.2mn barrels a day of oil last week, could shortly restore full output, adding to concerns over weak demand from China, the world’s largest importer of oil.

Crude prices have been volatile in recent weeks as investors weigh the impact of the tensions, which was expected to last several months. Libya accounts for less than one per cent of the world’s daily output.

The country’s eastern government, which is not recognised internationally, shut down large parts of the country’s production and exports, which analysts said was part of an escalating power struggle between the factions over the position of al-Kabir. The central bank holds billions of dollars in oil revenue, which is Libya’s only source of income.

Abdul Hamid Dbeibeh, prime minister of the Tripoli-based government in the west, has been trying to replace al-Kabir, who is backed by the east-based parliament and Khalifa Haftar, the warlord who controls eastern Libya.

Some traders and analysts speculated that there was enough global supply to make up the shortfall, as demand from China has been weaker than expected. But there has also been speculation that the Opec cartel will delay a plan to increase production during the fourth quarter.

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The International Energy Agency last month predicted that growth in demand for crude would soften at the end of the summer US driving season. It said a contraction in China had helped limit growth in demand during the second quarter.

“Notwithstanding that a large share of Libyan oil production is offline, oil prices are capitulating as investors remain laser focused on the demand-side of the equation with apprehensions that China’s economic malaise is worsening,” said Ehsan Khoman, head of commodities at MUFG.

However prices have been supported by speculation that Opec+ producers may delay production increases that are due in the fourth quarter because Saudi Arabia, the cartel leader, needs to finance its ambitious infrastructure projects.

“The market has been divided over whether the producer group is poised to relaunch a battle for market share, or if it will maintain cohesion and continue to exercise caution about supply increases,” Helima Croft, head of commodities research at RBC Capital Markets, wrote in a note this week. “We still remain in the latter camp.”

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Palisades and Eaton Fires May Not Be Fully Extinguished for Weeks

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Palisades and Eaton Fires May Not Be Fully Extinguished for Weeks

It may take weeks or longer for firefighters to fully extinguish the two most destructive fires that have ravaged parts of the Los Angeles area, fire officials warned.

The sheer sizes of those blazes, the Palisades and Eaton fires, have presented a significant challenge. They have charred almost 40,000 acres combined and are still only partly contained.

Difficult weather conditions have also hindered efforts. David Acuna, a battalion chief with Cal Fire, said the persistence of strong winds, and the fact that fires were burning through homes, which can generate intense heat, made containment impossible when the blazes first ignited.

Crews have been trying to establish a boundary around the fires, using trenches, natural barriers and other methods to prevent further spread. But Capt. Erik Scott, a spokesman for the Los Angeles Fire Department, said, “It’s going to be a slow, arduous process.”

The emergence of smaller fires over the last week has further complicated efforts. Of particular concern was the Auto fire in Ventura County, northwest of Los Angeles, which grew to more than 50 acres before being contained. Officials worried about it breaking free again in windy conditions.

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These fires have required an immediate response from both air and ground crews to prevent them from growing, Mr. Acuna said, which diverts resources from the larger blazes.

Stopping the fires’ forward progress is only the first step. Firefighters must also extinguish all remaining flames inside the contained area.

Mr. Scott said this second part of the process would also take time. Among other steps, he said, firefighters need to use hand tools to scrape away brush near the burn perimeter and turn over smoldering piles to ensure nothing is hot enough to reignite.

These timelines are not unusual for large fires. In 2018, the Woolsey fire burned through nearly 100,000 acres in Los Angeles and Ventura counties, destroying over 1,600 structures. The fire ignited in early November and was not contained for two weeks. And it took until early January for the fire to be fully extinguished.

The Santa Ana winds that have repeatedly raised the fire danger over the last week have so far proven lighter than anticipated on Tuesday, but forecasters warn that wind speeds could increase on Wednesday. The region remains critically dry, with little rain expected in the near future. The combination of those elements is threatening to ignite more fires across Southern California, and could further hinder firefighters’ efforts.

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Erin McCann contributed reporting.

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Top BlackRock executive Mark Wiedman to depart

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Top BlackRock executive Mark Wiedman to depart

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Top BlackRock executive Mark Wiedman is departing, in a move that disrupts the asset manager’s planning for the eventual departure of founder Larry Fink, according to four people close to the company.

Wiedman had been widely discussed as a potential successor to Fink for more than a decade and had recently been one of the $11.5tn asset manager’s most prominent public faces as the head of its client business.

BlackRock’s board described him in as a regulatory filing last year as one of three “senior leaders who we believe will play critical roles in BlackRock’s future” as it granted him a special retention package.

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However, Wiedman, who led the integration and rapid growth of BlackRock’s flagship index and exchange traded fund business, has opted not to wait around. His departure is expected to be announced very shortly, the people said. He is forfeiting $8mn in stock options, according to the proxy.

Wiedman’s departure comes after the world’s largest asset manager embarked on a $28bn acquisition spree last year to bulk up its footprint in the fast-growing and lucrative alternative assets sector. The strategic moves not only put pressure on Fink, 72, to personally oversee their success, but also brought in a clutch of high-powered and high-paid executives who need to be carefully managed.

Fink, who has led BlackRock since its 1988 founding, is very popular with investors and is among the most influential figures in finance. But analysts and some within the firm have begun expressing concerns whether the slow pace of succession planning will drive the next generation of top talent to start going elsewhere. BlackRock president Rob Kapito, 67, is also a founder of the firm.

BlackRock declined to comment.

Wiedman is leaving almost exactly a year after Salim Ramji, another executive who was also once touted as a potential leader. Ramji became chief executive of Vanguard, BlackRock’s chief rival in the US and the world’s second-largest asset manager. Several other lower-ranking executives have also left in the past few years to take leadership jobs at smaller firms, including Daniel Gamba to Northern Trust and Zach Buchwald to Russell Investments.

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After Ramji left, the group touted its strong stable of current leaders, including Wiedman and two other executives who also received special option grants: chief operating officer Robert Goldstein and chief financial officer Martin Small.

“BlackRock is proud to have a record of our firm’s alumni going on to lead multiple investment management companies and financial institutions,” it has previously said.

A senior Wall Street figure with knowledge of the situation said “Larry [Fink] and Rob [Kapito] are not going anywhere. They just made a major acquisition and you have to see that through, [but] Wiedman is at an age where if he doesn’t make a move, he ages out of being a CEO.”

A lawyer by training, Wiedman joined BlackRock in 2004 after stints at the US Treasury and McKinsey. He started BlackRock’s financial markets advisory consulting arm, which helped central banks and government agencies dig through the rubble of the 2008 financial crisis.

Wiedman negotiated the 2009 purchase and integration of Barclays Global Investors, the deal widely seen as the most important in BlackRock’s history. He then headed up the resulting iShares business from 2011 to 2019 as it developed into a juggernaut in index and ETFs.

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Keenly interested in talent development, Wiedman recruited or promoted many of BlackRock’s top executives, including Small and Rachel Lord, who heads the international business.

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World News Live Today January 15, 2025: Donald Trump says to create new department to collect revenue from foreign sources on inauguration day

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World News Live Today January 15, 2025: Donald Trump says to create new department to collect revenue from foreign sources on inauguration day

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World News Live: Get real-time updates on international politics, economic changes, conflicts, and environmental issues. Access the latest breaking news and in-depth stories as they happen, keeping you informed of events shaping the world.

Latest news on January 15, 2025: Trump did not specify whether the new agency would replace collections of tariffs, duties, fees and fines by US Customs and Border Protection.

World News Live: Welcome to our World News live blog, your go-to source for instant updates on major events across the globe. Whether it’s political shifts, economic trends, environmental crises, or international conflicts, we deliver real-time reports to keep you informed and engaged with the latest global developments. Disclaimer: This is an AI-generated live blog and has not been edited by Hindustan Times staff.…Read More

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Jan 15, 2025 12:30 AM IST

US News Live : Donald Trump says to create new department to collect revenue from foreign sources on inauguration day

  • Donald Trump said in a social media post he would create the department on January 20, the day he takes office as president for a second term

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Jan 15, 2025 12:15 AM IST

US News Live : Speaker Johnson orders US Capitol flags raised to full height for Donald Trump’s inauguration

  • The Republican leader’s decision means that President-elect Donald Trump will not take the oath of office for his second term under a half-staff flag

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