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Cyberattack Is Blunted as Governments, Companies Gain Upper Hand

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  • Cyberattack Is Blunted as Governments, Companies Gain Upper Hand

Governments and companies around the world began to gain the upper hand against the first wave of an unrivaled global cyberattack, even as the assault was poised to continue claiming victims this week.

More than 200,000 computers in at least 150 countries have so far been infected, according to Europol, the European Union’s law enforcement agency. The U.K.’s National Cyber Security Centre said new cases of so-called ransomware are possible “at a significant scale.”

“For now, it does not look like the number of infected computers is increasing,” said a Europol spokesman. “We will get a decryption tool eventually, but for the moment, it’s still a live threat and we’re still in disaster recovery mode.”

At Germany’s national Deutsche Bahn railroad, workers were laboring under “high pressure” Monday to repair remaining glitches with train stations’ electronic departure boards, a spokesman said.

French car-maker Renault SA, which halted production at some factories to stop the virus from spreading, said 90 percent of factories worldwide had now resumed operations, according to a spokesman Monday.

A new version of the ransomware may have also been spreading over the weekend. Matt Suiche, founder of United Arab Emirates-based cyber security firm Comae Technologies, said around 10,000 machines have been infected by the second variation of the malware.

The malware used a technique purportedly stolen from the U.S. National Security Agency. It affected the U.K.’s National Health Service, Russia’s Ministry of Interior, China government agencies, Deutsche Bahn, automakers Nissan Motor Co. and Renault, PetroChina, logistics giant FedEx Corp., and other company and hospital computer systems in countries from Eastern Europe to the U.S. and Asia.

The hackers used the tool to encrypt files within affected computers, making them inaccessible, and demanded ransom — typically $300 in bitcoin. Russia and Ukraine had a heavy concentration of infections, according to Dutch security company Avast Software BV.

Microsoft Corp. President Brad Smith, in a blog post Sunday, said the attack is a “wake-up call” for governments in the U.S. and elsewhere to stop stockpiling tools to exploit digital vulnerabilities. “They need to take a different approach and adhere in cyberspace to the same rules applied to weapons in the physical world,” he said.

Normal Operations

About 97 percent of U.K. facilities and doctors disabled by the attack were back to normal operation, Home Secretary Amber Rudd said Saturday after a government meeting. At the height of the attack Friday and early Saturday, 48 organizations in the NHS were affected, and hospitals in London, North West England and Central England urged people with non-emergency conditions to stay away as technicians tried to stop the spread of the malicious software.

The initial attack was stifled when a security researcher disabled a key mechanism used by the worm to spread, but experts said the hackers were likely to mount a second attack because so many users of personal computers with Microsoft operating systems couldn’t or didn’t download a security patch released in March that Microsoft had labeled “critical.”

Microsoft said in a blog post Saturday that it was taking the “highly unusual“ step of providing the patch for older versions of Windows it was otherwise no longer supporting, including Windows XP and Windows Server 2003.

While the scale of the attack shows Microsoft needs to strengthen its own capabilities, “there is simply no way for customers to protect themselves against threats unless they update their system,” Smith said in his blog post. “Otherwise they’re literally fighting the problems of the present with tools from the past.

“This attack is a powerful reminder that information technology basics like keeping computers current and patched are a high responsibility for everyone, and it’s something every top executive should support.”

Victims have paid about $50,000 in ransom so far, with the total expected to rise, said Tom Robinson, chief operating officer and co-founder of Elliptic Enterprises Ltd., a ransomware consultant that works with banks and companies in the U.K., U.S. and Europe. Robinson, in an interview by email, said he calculated the total based on payments tracked to bitcoin addresses specified in the ransom demands.

Last year an acute-care hospital in Hollywood paid $17,000 in bitcoin to an extortionist who hijacked its computer systems and forced doctors and staff to revert to pen and paper for record-keeping.

Business Targets

A spokesman for Spain’s Telefonica SA said the hack affected some employees at its headquarters, but the phone company is attacked frequently and the impact of Friday’s incident wasn’t major. FedEx said it was “experiencing interference,” the Associated Press reported.

Renault halted production at some factories to stop the virus from spreading, a spokesman said Saturday, while Nissan’s car plant in Sunderland, in northeast England, was affected without causing any major impact on business, an official said.

Russia’s Interior Ministry, with oversight of the police forces, said about “1,000 computers were infected,” which it described as less than 1 percent of the total, according to its website.

In China, the malware affected computers at “several” unspecified government departments, the country’s Cyberspace Administration said on its WeChat blog Monday. Since that initial attack, agencies and companies from the police to banks and communications firms have put preventive measures in place, while Qihoo 360 Technology Co., Tencent Holdings Ltd. and other cybersecurity firms have begun making protection tools available, the internet overseer said.

China National Petroleum Corp., which owns PetroChina, reported that some of its 21,000 gas stations had seen their digital payment systems disabled by the attack and resorted to accepting cash. More than 80 percent of the stations had been reconnected to the network as of noon on May 14, the company said. Several Chinese universities had also been hit by the attacks, according to local media reports.

In Japan, Hitachi Ltd. said that some of its computers had been affected. In South Korea, CJ CGV Co., the country’s largest cinema chain, said advertising servers and displays at film theaters were hit by ransomware. Movie servers weren’t affected and are running as normal, it said in a text message Monday. Indonesia’s government reported two hospitals in Jakarta were affected.

While any size company could be vulnerable, many large organizations with robust security departments would have prioritized the update that Microsoft released in March and wouldn’t be vulnerable to Friday’s attack.

Users Tricked

Ransomware is a particularly stubborn problem because victims are often tricked into allowing the malicious software to run on their computers, and the encryption happens too fast for security software to catch it. Some security experts calculate that ransomware may bring in as much as $1 billion a year in revenue for the attackers.

The attack was apparently halted in the afternoon in the U.K. when a researcher took control of an Internet domain that acted as a kill switch for the worm’s propagation, according to Ars Technica.

“I will confess that I was unaware registering the domain would stop the malware until after I registered it, so initially it was accidental,” wrote the researcher, who uses the Twitter name @MalwareTechBlog. “So long as the domain isn’t revoked, this particular strain will no longer cause harm, but patch your systems ASAP as they will try again.”

A second variant of the domain also became apparent. Suiche, founder of Comae Technologies, said on Sunday he registered another kill-switch for a different version of the ransomware. About 50% of machines that would have spread the infection by the second variation of the malware have Russian I.P. addresses, according to Suiche.

There is a high probability that Russian-language cybercriminals were behind the attack, said Aleks Gostev, chief cybersecurity expert for Kaspersky Labs.

“Ransomware is traditionally their topic,” he said. “The geography of attacks that hit post-Soviet Union most also suggests that.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Crude Oil

Oil Prices Dip on Sluggish Demand Signs and Fed’s Interest Rate Outlook

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Oil prices on Monday dipped as the U.S. Federal Reserve officials’ comments showed a cautious approach to interest rate adjustments.

The dip in prices reflects concerns over the outlook for global economic growth and its implications for energy consumption in the world’s largest economy.

Brent crude oil, against which Nigerian oil is priced, slipped by 7 cents or 0.1% to $82.72 per barrel while U.S. West Texas Intermediate crude oil stood at $78.21 per barrel, a 5 cents decline.

Auckland-based independent analyst Tina Teng highlighted that the oil market’s focus has shifted from geopolitical tensions in the Middle East to the broader world economic outlook.

Concerns arose as China’s producer price index (PPI) contracted in April, signaling continued sluggishness in business demand.

Similarly, recent U.S. economic data suggested a slowdown, further dampening market sentiment.

The discussions among Federal Reserve officials regarding the adequacy of current interest rates to stimulate inflation back to the desired 2% level added to market jitters.

While earlier in the week, concerns over supply disruptions stemming from the Israel-Gaza conflict had provided some support to oil prices, the attention has now turned to macroeconomic indicators.

Analysts anticipate that the U.S. central bank will maintain its policy rate at the current level for an extended period, bolstering the dollar.

A stronger dollar typically makes dollar-denominated oil more expensive for investors holding other currencies, thus contributing to downward pressure on oil prices.

Furthermore, signs of weak demand added to the bearish sentiment in the oil market. ANZ analysts noted that U.S. gasoline and distillate inventories increased in the week preceding the start of the U.S. driving season, indicating subdued demand for fuel.

Refiners globally are grappling with declining profits for diesel, driven by increased supplies and lackluster economic activity.

Despite the prevailing challenges, expectations persist that the Organization of the Petroleum Exporting Countries (OPEC) and their allies, collectively known as OPEC+, may extend supply cuts into the second half of the year.

Iraq, the second-largest OPEC producer, expressed commitment to voluntary oil production cuts and emphasized cooperation with member countries to stabilize global oil markets.

However, Iraq’s suggestion that it had fulfilled its voluntary reductions and reluctance to agree to additional cuts proposed by OPEC+ members stirred speculation and uncertainty in the market.

ING analysts pointed out that Iraq’s ability to implement further cuts might be limited, given its previous shortfall in adhering to voluntary reductions.

Meanwhile, in the United States, the oil rig count declined to its lowest level since November, signaling a potential slowdown in domestic oil production.

As oil markets continue to grapple with a complex web of factors influencing supply and demand dynamics, investors and industry stakeholders remain vigilant, closely monitoring developments and adjusting their strategies accordingly in an ever-evolving landscape.

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Brent Crude Hovers Above $84 as Demand Rises in U.S. and China

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Brent crude oil continued its upward trajectory above $84 a barrel as demand in the United States and China, the two largest consumers of crude globally increased.

This surge in demand coupled with geopolitical tensions in the Middle East has bolstered oil markets, maintaining Brent crude’s resilience above $84 a barrel.

The latest data revealed a surge in demand, particularly in the U.S. where falling crude inventories coincided with higher refinery runs.

This trend indicates growing consumption patterns and a positive outlook for oil demand in the world’s largest economy.

In China, oil imports for April exceeded last year’s figures, driven by signs of improving trade activity, as exports and imports returned to growth after a previous contraction.

ANZ Research analysts highlighted the ongoing strength in demand from China, suggesting that this could keep commodity markets well supported in the near term.

The positive momentum in demand from these key economies has provided a significant boost to oil prices in recent trading sessions.

However, amidst these bullish indicators, geopolitical tensions in the Middle East have added further support to oil markets. Reports of a Ukrainian drone attack setting fire to an oil refinery in Russia’s Kaluga region have heightened concerns about supply disruptions and escalated tensions in the region.

Also, ongoing conflict in the Gaza Strip has fueled apprehensions of broader unrest, particularly given Iran’s support for Palestinian group Hamas.

Citi analysts emphasized the geopolitical risks facing the oil market, pointing to Israel’s actions in Rafah and growing tensions along its northern border. They cautioned that such risks could persist throughout the second quarter of 2024.

Despite the current bullish sentiment, analysts anticipate a moderation in oil prices as global demand growth appears to be moderating with Brent crude expected to average $86 a barrel in the second quarter and $74 in the third quarter.

The combination of robust demand from key economies like the U.S. and China, coupled with geopolitical tensions in the Middle East, continues to influence oil markets with Brent crude hovering above $84 a barrel.

As investors closely monitor developments in both demand dynamics and geopolitical events, the outlook for oil prices remains subject to ongoing market volatility and uncertainty.

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Brent Plunges Below $83 Amidst Rising US Stockpiles and Middle East Uncertainty

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The global oil declined today as Brent crude prices plummeted below $83 per barrel, its lowest level since mid-March.

This steep decline comes amidst a confluence of factors, including a worrisome surge in US oil inventories and escalating geopolitical tensions in the Middle East.

On the commodity exchanges, Brent crude, the international benchmark for oil prices, experienced a sharp decline, dipping below the psychologically crucial threshold of $83 per barrel.

West Texas Intermediate (WTI) crude oil, the US benchmark, also saw a notable decrease to $77 per barrel.

The downward spiral in oil prices has been attributed to a plethora of factors rattling the market’s stability.

One of the primary drivers behind the recent slump in oil prices is the mounting stockpiles of crude oil in the United States.

According to industry estimates, crude inventories at Cushing, Oklahoma, the delivery point for WTI futures contracts, surged by over 1 million barrels last week.

Also, reports indicate a significant buildup in nationwide holdings of gasoline and distillates, further exacerbating concerns about oversupply in the market.

Meanwhile, geopolitical tensions in the Middle East continue to add a layer of uncertainty to the oil market dynamics.

The Israeli military’s incursion into the Gazan city of Rafah has intensified concerns about the potential escalation of conflicts in the region.

Despite efforts to broker a truce between Israel and Hamas, designated as a terrorist organization by both the US and the European Union, a lasting peace agreement remains elusive, fostering an environment of instability that reverberates across global energy markets.

Analysts and investors alike are closely monitoring these developments, with many expressing apprehension about the implications for oil prices in the near term.

The recent downturn in oil prices reflects a broader trend of market pessimism, with indicators such as timespreads and processing margins signaling a weakening outlook for the commodity.

The narrowing of Brent and WTI’s prompt spreads to multi-month lows suggests that market conditions are becoming increasingly less favorable for oil producers.

Furthermore, the strengthening of the US dollar is compounding the challenges facing the oil market, as a stronger dollar renders commodities more expensive for investors using other currencies.

The dollar’s upward trajectory, coupled with oil’s breach below its 100-day moving average, has intensified selling pressure on crude futures, exacerbating the latest bout of price weakness.

In the face of these headwinds, some market observers remain cautiously optimistic, citing ongoing supply-side risks as a potential source of support for oil prices.

Factors such as the upcoming June meeting of the Organization of the Petroleum Exporting Countries (OPEC+) and the prospect of renewed curbs on Iranian and Venezuelan oil production could potentially mitigate downward pressure on prices in the coming months.

However, uncertainties surrounding the trajectory of global oil demand, geopolitical developments, and the efficacy of OPEC+ supply policies continue to cast a shadow of uncertainty over the oil market outlook.

As traders await official data on crude inventories and monitor geopolitical developments in the Middle East, the coming days are likely to be marked by heightened volatility and uncertainty in the oil markets.

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