A U.S. federal judge confirmed on Monday that a $3.7 billion bid from Red Tree Investments, a subsidiary of Contrarian Funds, will serve as the starting point in the auction for Citgo Petroleum, the U.S. subsidiary of Venezuela's state-owned oil company. This auction is aimed at liquidating assets to satisfy creditors and bondholders, triggering a complex legal and financial contest among 16 creditors vying for a share of Citgo's estimated value.

The U.S. energy sector is witnessing an intensifying standoff as Phillips 66 $PSX has formally rejected a proposal from Elliott Investment Management to break up the company. In a letter set to be published, Phillips 66 questioned the objectivity behind Elliott’s push for a split, underscoring concerns over a potential conflict of interest. The issue centers around Elliott's simultaneous efforts to acquire Citgo Petroleum, one of Phillips 66’s key competitors.