BP makes major oil and gas discovery in Brazil's Santos basin
BP, which has plans to grow its global upstream production to 2.3 million barrels to 2.5 million barrels of oil equivalent a day in 2030, said it was its largest discovery in 25 years.
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BP says it makes biggest oil and gas find in 25 years
Energy giant BP says it has made its largest oil and gas discovery this century as it shifts its focus away from renewable energy and back to fossil fuels. The UK-based firm said on Monday that it is conducting tests at the site in deep water off Brazil's west coast. The discovery could play a major role in BP's plans to increase crude oil production. Company executive Gordon Birrell says the discovery is "BP's largest in 25 years" and that the firm will explore building a production hub there. In February, BP slashed its planned investments in renewable energy and said it would spend billions of dollars more a year on its oil and gas operations, as it aims to boost investor confidence. BP said it had found a roughly 500-metre area of oil and gas at the Bumerangue block in the Santos basin, 250 miles (400km) off Brazil's west coast. It said the discovery was the company's biggest since the Shah Deniz gas field in the Caspian Sea in 1999. The find adds to BP's several other discoveries of energy reserves this year, including those in the Gulf of Mexico, which is called the Gulf of America by the administration of US President Donald Trump, and Egypt. "This is another success in what has been an exceptional year so far for our exploration team", said Mr Birrell, the firm's executive vice president for production and operations. BP's attempt to transform itself into a "net zero" energy producer has faced major hurdles since it put the plan into action five years ago. In 2020, the Covid-19 pandemic pushed it to a $5.7bn (£4.29bn) annual loss. It also took a $25bn hit two years later from writing off a stake in its Russian energy business after the start of the Ukraine war. BP's share price has also come under pressure as it pumped billions of dollars into renewable energy, while rival companies benefitted from soaring oil and gas prices in the wake of Russia's invasion of Ukraine. BP shares rose by a little over 1% in London trading after the announcement.
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Oil Steadies as Trump Threatens India for Taking Russian Crude
(Bloomberg) -- Oil steadied, after a three-day drop, as investors weighed the impact of risks to Russian supplies, with US President Donald Trump stepping up his threat to penalize India for buying Moscow's crude. PATH Train Service Resumes After Fire at Jersey City Station Chicago Curbs Hiring, Travel to Tackle $1 Billion Budget Hole Seeking Relief From Heat and Smog, Cities Follow the Wind Mayor Asked to Explain $1.4 Billion of Wasted Johannesburg Funds Brent traded below $69 a barrel after shedding more than 6% over the previous three sessions, while West Texas Intermediate was near $66. Trump said he would be 'substantially raising' the tariff on Indian exports to the US over the nation's purchases of Russian oil as part of a bid to force Moscow to agree a truce in Ukraine. New Delhi slammed the move as unjustified. Oil has trended lower in recent sessions following a three-month increase. The weakness has been driven by signs that the world's largest economy was slowing amid Trump's broader trade measures, endangering energy demand, as well as moves by OPEC+ to relax supply curbs. Taken together, that's spurred concerns that a crude glut will form this half, weighing on prices. 'The fundamental outlook for the oil market is bearish: OPEC+ supply increases should ensure the market is in surplus from the fourth quarter,' said Warren Patterson, head of commodities strategy at ING Groep NV. 'However, a key and very real risk to this view is the potential of secondary tariffs on buyers of Russian oil.' The US president's latest warning to India came ahead of his Aug. 8 deadline for Russia to reach a truce with Ukraine. US Special Envoy Steve Witkoff is expected to visit Moscow on Wednesday, Tass reported. India emerged as the biggest buyer of Russian seaborne exports of crude following Russia's invasion of Ukraine in 2022, soaking up discounted barrels shunned by western nations and ramping up purchases from almost zero to about one-third of imports. China is also a major taker of Moscow's oil. 'There is a lot of noise around India facing tariffs, but clearly there is the risk that other buyers also face secondary tariffs,' said ING's Patterson. 'The more buyers who face these tariffs, the more difficult it becomes for the market to deal with the potential disruption.' Any disruption to Indian purchases of Russian oil could force it to look elsewhere for supplies. Rystad Energy said in a recent note that other OPEC+ countries, especially in the Middle East, were in a position to offset any potential shortfall. At the weekend, the alliance agreed to raise production from September by about 547,000 barrels a day. AI Flight Pricing Can Push Travelers to the Limit of Their Ability to Pay Government Steps Up Campaign Against Business School Diversity What Happens to AI Startups When Their Founders Jump Ship for Big Tech How Podcast-Obsessed Tech Investors Made a New Media Industry Russia's Secret War and the Plot to Kill a German CEO ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Brazil chooses local relief over retaliation for US tariffs, sources say
By Marcela Ayres, Bernardo Caram and Lisandra Paraguassu BRASILIA (Reuters) -Brazil's government has set aside for now plans for direct retaliation against steep U.S. tariffs taking effect this week, focusing instead on a relief package for industries hit hardest by the levies, sources familiar with the strategy said. Wide-ranging exemptions granted in U.S. President Donald Trump's executive order last week spared some of the most vulnerable sectors of Latin America's largest economy, to the relief of many investors and business leaders. That has left Brasilia cautious about responding to Trump with reciprocal tariffs or other retaliation that could escalate tensions, said government officials, who requested anonymity to discuss confidential deliberations. Talks with Washington are likely to be slow and complex, said one of the sources, so Brazil's government is prioritizing immediate relief for exporters, such as through public credit lines and other support for export finance. Another official said the government is studying potential responses to the tariffs that would affect U.S. companies, but sees them as a last resort if negotiations fail. Those potential countermeasures, now under review, could include suspension of royalty payments for pharmaceutical patents and media copyrights, two sources said. The government had also signaled last year that it was preparing a new tax that could affect big U.S. tech companies, but shelved the plan this year to avoid antagonizing Trump ahead of his April tariff announcement. At the time, Brazil was saddled with a 10% tariff, among the lowest in the world, which many credited to a longstanding U.S. trade surplus with Brazil. Trump then tied a steeper 50% tariff in July to what he called a political "witch hunt" against former President Jair Bolsonaro, a right-wing ally on trial for an alleged coup plot to overturn his 2022 election loss. Brazilian President Luiz Inacio Lula da Silva initially said he would respond under the country's Economic Reciprocity Law, passed by Congress to provide legal grounds for countermeasures against trade sanctions, fueling speculation about retaliation. Talk of reciprocal action has since faded, even as Lula criticizes Trump's rationale for the tariff hike, defending the independence of Brazil's judiciary and insisting any negotiations should remain strictly focused on trade. U.S. tariff exemptions granted last week for Brazil's aviation, energy and mining industries were taken in Brasilia as evidence that patient diplomacy and lobbying by affected U.S. companies seeking relief was the best way to get results in Washington. Brazil also said it plans to file a formal complaint at the World Trade Organization over the tariffs, even though that dispute settlement system has been stalled since the first Trump administration. "You still need to go through the available channels," one Brazilian official said, while acknowledging that a resolution is unlikely under the current state of the WTO. More immediately, the government is fine-tuning measures to shield sectors most hurt by the U.S. tariffs set to take effect on Wednesday, extending financial relief to companies already facing canceled contracts. Officials have said the package will likely include credit lines and possible tweaks to the export credit insurance and export financing mechanisms, according to one of the sources. Finance Minister Fernando Haddad, who said relief measures could begin rolling out this week, on Friday said the government was never committed to retaliating against Washington. "We never used that verb to characterize the actions the Brazilian government will take," he said. "These are actions to protect sovereignty, to protect our industry, our agribusiness, our agriculture," he told reporters. "That word (retaliation) was not present in the president's speech, nor in any minister's." Solve the daily Crossword
