The oil revenues of Iran, Russia and Venezuela have come into the crosshairs of President-elect Donald Trump, who is preparing a wide-ranging sanctions package that could have dramatic effects on energy markets. While plans are still in the early stages, advisers say the measures are being formulated to blunt three diplomatic thorns that have stuck in the side of multiple US administrations. Trump wants to end Russia’s war on Ukraine, which next month enters its fourth year. He said last week he’s open to meeting Vladimir Putin and getting a deal done. Trump is also keen on increasing pressure over Iran’s nuclear work, while punishing Venezuela because of its anti-democratic turn. But imposing new sanctions on three of the world’s largest oil producers would be challenging. Crude already jumped after Joe Biden’s administration hit the Kremlin with new measures earlier this month, and some analysts suggest prices could rise much higher if more oil is throttled before reaching global markets. Click here to read a Bloomberg live blog with details about more potential sanctions measures.
BP is planning to eliminate 5% of its workforce, or 4,700 jobs globally, after the London-based energy giant fell further behind its peers. More cost-cutting efforts are planned this year and beyond, Chief Executive Officer Murray Auchincloss told staff. The company has stopped or paused 30 projects since last June to focus on ones that make the most money. A digitization drive, including pushing artificial intelligence, is key to the new plans. BP has slowed compared to fellow oil companies during the CEO’s tenure, and is now worth less than half as much as Shell Plc. Shares rose a little more than 1% on news of the job cuts.