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World Oil

(Bloomberg) – Chevron Corp. will promote Javier La Rosa to run its operations in Latin America as it builds its presence in the region. La Rosa, who joined the oil giant in 2000, will be based in Buenos Aires and replace Eric Dunning, who is set to retire after a 40-plus year career at the company, Chevron said.

The change takes effect in April. Mariano Vela will succeed La Rosa as country manager for Venezuela.

The move comes as Chevron charts a path for a bigger role in Latin America with its proposed $53 billion acquisition of Hess Corp. The deal includes Hess’s 30% stake in an Exxon Mobil Corp.-led oil project in Guyana, the world’s largest discovery in the past decade.

In Venezuela, the company will expand works, including new drilling, after the Biden administration temporarily lifted a four-year ban on the country’s oil industry. Chevron expects production in the country to increase 15% by the end of the year, Chief Financial Officer Pierre Breber said in an interview last month.

The San Ramon, California-based company is the only U.S. oil major left in Venezuela since the late Hugo Chavez seized the assets of competitors Exxon and ConocoPhillips in the 2000s. During La Rosa’s tenure, Chevron obtained a license from the U.S. Treasury that allowed it to continue limited works in the country. It also conducted negotiations with the Nicolas Maduro regime to rewrite the terms of its oil contracts with Petroleos de Venezuela SA, secured control of its oil operations and restarted crude exports to the U.S.

La Rosa previously served as president of Chevron’s Brazil and Colombia operations, and has worked for the company in Europe, Asia and Africa.

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Energy News Beat

CNBC

Oil rose on Friday, as the U.S. jobs market slowed more than expected last month, bolstering expectations of a pause in interest rate hikes in the world’s biggest consumer, but they remained on track for a weekly loss as supply concerns driven by Middle East tensions eased.

Brent crude futures were up 81 cents, or 0.9%, to $87.66 a barrel at 1243 GMT, while U.S. West Texas Intermediate crude futures gained $1.01, or 1.2%, to $83.47 a barrel.

Both benchmarks gained more than $2 a barrel on Thursday, but were on track to lose up to 3% on the week.

U.S. job growth slowed more than expected in October, official data showed on Friday, while wage inflation cooled, pointing to an easing in labour market conditions.

The data could bolster the view that the U.S. Federal Reserve need not raise interest rates further.

The Fed held interest rates steady on Wednesday, while the Bank of England held rates at a 15-year peak. The stable policies kept oil prices supported as some risk appetite returned to markets.

Meanwhile, China’s manufacturing activity unexpectedly contracted in October. The official purchasing managers’ index (PMI) fell to 49.5 in October from 50.2, dipping back below the 50-point level demarcating contraction from expansion, data from the National Bureau of Statistics showed on Wednesday.

On Friday, a private sector survey showed China’s services activity expanded at a slightly faster pace in October, but sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.

On the supply side, Saudi Arabia is expected to reconfirm an extension of its voluntary oil output cut of 1 million barrels per day through December, based on analyst expectations.

Geopolitical concerns also remained in focus.

“The oil market will be watching for an escalation of tensions, particularly on the Lebanese border, as Hezbollah attacks increase,” City Index Fiona Cincotta said.

Hezbollah leader Sayyed Hassan Nasrallah on Friday is expected to make his first public comments since Hamas and Israel went to war, a speech that will be scrutinised for clues on how the group’s role in the conflict might evolve.

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