International News 27 March 2025
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European Union Rejects Russia's Demand to Lift Sanctions After Talks in Saudi Arabia
The European Union has rejected easing sanctions on Russia without showing a genuine commitment to ending its war in Ukraine. This rejection came after discussions on the Ukraine conflict took place in Saudi Arabia with US support. The EU noted the proposals made to ensure safe navigation and protect energy infrastructure in Ukraine and Russia. However, the EU emphasized that sanctions relief would only be considered if it serves Ukraine’s interests and contributes to a peace agreement acceptable to Ukraine. Russia requested the lifting of some EU sanctions in exchange for an agreement on shipping goods in the Black Sea, but this demand was seen by EU diplomats as potentially undermining ceasefire efforts and not coordinated with the US. The EU remains ready to cooperate with Ukraine, the US, and other partners on the next steps in addressing this conflict.
Not the US, This is the Country Leading in Chip Manufacturing Investment in 2025
China is expected to lead in investments for new computer chip manufacturing equipment in 2025, despite a year-on-year decline in spending, according to a report from SEMI. Taiwan and South Korea are expected to follow. Global spending on such equipment is forecasted to increase by 2% this year, reaching $110 billion, marking six consecutive years of growth. This growth can be attributed to investments in equipment for chip production and artificial intelligence (AI). The impact of AI is expected to drive stronger investment growth of 18% by 2026. China, already the largest consumer of chips, has expanded its chip manufacturing capacity, primarily in response to US government restrictions and to reduce dependence on imported chips. ASML, a leading chip equipment manufacturer, predicts sales of 32-38 billion euros in 2025.
Oil Prices Surge by 1%, US Crude and Fuel Stocks Tighten
Oil prices rose as US government data showed a decline in crude oil and fuel inventories last week. Concerns about tighter global supply due to potential US tariffs on countries purchasing Venezuelan crude oil also contributed to the increase. Brent crude oil prices for May 2025 delivery closed up 1.05% at $73.79 per barrel, while West Texas Intermediate (WTI) crude oil prices for the same delivery month rose 0.94% to $69.65 per barrel. US crude oil inventories saw a significant decline as refineries ramped up production, with gasoline and distillate stocks also falling. The Energy Information Administration reported a 3.3 million barrel drop in crude oil inventories to 433.6 million barrels for the week ending March 21, surpassing analysts' expectations. The threat of US tariffs on countries buying Venezuelan crude oil led to a halt in oil trade with Venezuela’s main buyer, China.