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The "Santa Claus rally" tends to boost stocks during the last week of December, but it seems like Santa has been absent this week.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all ended Tuesday slightly lower. Although the losses weren't too drastic, it was the third trading day in a row in which the three major U.S. stock indexes were lower at market close.
Meanwhile, metals markets — including gold, silver and copper — continued their year-end rally. The most active gold and silver contracts are both currently on pace for their strongest year since 1979.
The Dow Jones Industrial Average fell 94.87 points and ended the day at 48,367.06, about 0.2% lower, according to FactSet.
The S&P 500 was down 9.50 points to 6,896.24, about 0.1% lower.
The Nasdaq Composite was down 55.27 points to 23,419.08, finishing 0.2% lower.
A tightening U.S. naval blockade has left approximately $900 million worth of Venezuelan crude stranded at sea, marking a significant escalation in geopolitical tensions. Following the recent seizure of a sanctioned tanker, dozens of vessels are currently idling in the Caribbean or diverting to avoid interception. Reports indicate that over 11 million barrels are stuck, as the U.S. Coast Guard enforces a comprehensive maritime "quarantine" aimed at choking the financial lifelines of the Maduro administration.
For oil and gas professionals, this disruption signals a volatile shift in global heavy crude flows. While Chevron continues limited exports under specific licenses, most "shadow fleet" operators have suspended operations. This bottleneck has forced PDVSA to offer steeper discounts to Asian buyers, with Merey heavy crude widening its spread against Brent. Industry analysts warn that if the blockade persists, Venezuela may face imminent well shut-ins due to exhausted storage capacity, potentially removing up to 500,000 barrels per day from the market.
In a landmark move for the utility technology sector, Octopus Energy has officially announced the spinoff of its AI-driven platform, Kraken, at a valuation of $8.65 billion. This demerger follows a successful $1 billion funding round led by D1 Capital Partners, with participation from major institutional investors including Fidelity International and Ontario Teachers' Pension Plan.
Kraken currently services over 70 million accounts globally for major industry players like EDF, Tokyo Gas, and National Grid. By transitioning into an independent entity, the company aims to accelerate its expansion as a neutral operating system for the global energy transition. Octopus Energy will retain a 13.7 percent stake while utilizing $320 million in additional fresh capital to bolster its own retail and renewable operations. Analysts view this structural separation as a strategic precursor to a potential initial public offering within the next two years, signaling a new era for energy digitalization.
Chevron maintains its Venezuelan operations despite mounting political tensions and uncertainty over sanctions. Following a renewed waiver from the Trump administration, the company resumed crude shipments in August after a year-long hiatus. The potential contribution stands at 250,000 barrels per day, representing over 10% of Chevron's total production and providing critical heavy crude diversification for its Gulf Coast refineries.
Venezuela's output remains volatile, with the IEA reporting 860,000 barrels per day in November, though officials claim the country reached its 1.2 million barrel target. As the largest foreign investor with 102 years of Venezuelan presence, Chevron is playing a strategic long game despite near-term risks. CEO Mike Wirth affirmed the company's commitment to supporting Venezuela's economic reconstruction when circumstances stabilize. With an estimated 300 billion barrels in reserves, Venezuela represents a substantial prize worth enduring ongoing geopolitical turbulence.
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