Oil prices continued to slide on Friday despite a fresh U.S. Federal Reserve rate cut and escalating tanker seizures by the Trump administration, with market sentiment turning bearish across global benchmarks.
As of 09:10 AM CT on December 12, 2025, WTI traded at $57.33 per barrel, down 0.47%, while Brent slipped 0.51% to $60.97/bbl. Murban crude fell 0.67% to $62.16/bbl, and Nymex natural gas dropped nearly 3% to $4.105/MMBtu, underscoring a broad pullback across energy commodities.
Market Mood Worsens Despite Policy Stimulus
The Fed lowered the federal funds rate to 3.50–3.75%, a move typically supportive of commodities. At the same time, the Trump administration seized a Venezuelan VLCC headed for Cuba and threatened further maritime interventions.
Yet crude has fallen to a two-month low, with traders weighing the risk of a Russia–Ukraine peace deal and persistent demand downgrades.
IEA Softens Outlook on 2026 Oil Glut
The International Energy Agency trimmed its projected 2026 surplus to 3.84 million b/d, about 250,000 b/d lower than last month’s estimate.
The revision came as the agency lifted its 2026 demand growth forecast to 860,000 b/d, still lagging behind an expected 2.4 million b/d supply increase.
Chinese Buyers Increase Saudi Crude Nominations
Chinese refiners sharply increased nominations for Saudi term cargoes to 49.5 million barrels, up from 36 million barrels in December.
The surge follows Saudi Aramco’s decision to cut the Arab Light OSP to its weakest level in nearly five years, boosting buying interest.
Washington Steps Up Venezuelan Cargo Seizures
U.S. forces seized the VLCC Skipper, loaded with Venezuelan crude bound for Cuba, and pledged more maritime interceptions as pressure mounts on Nicolás Maduro. The escalation widens geopolitical risks for Atlantic Basin supply flows.
Strong Interest Emerges in Trump’s First Gulf Sale
The Big Beautiful Gulf 1 lease sale generated $300 million for the U.S. budget, drawing 219 bids.
Chevron submitted the highest individual bid—$18.9 million—for a block in Keathley Canyon, while BP and Woodside Energy also secured significant acreage.
TotalEnergies Expands in Namibia
Portugal’s GALP agreed to transfer a 40% stake in the Mopane discovery to TotalEnergies in exchange for a 10% interest in the Venus project.
GALP shares dropped nearly 20% following the strategic shift.
China’s EV Market Breaks Records
China’s new-energy vehicle sales hit 1.82 million units, making up 53.2% of total monthly car sales—the highest share ever.
The figure reflects a 21% year-on-year increase despite global automotive headwinds.
Russia Remains Below OPEC+ Quota
Russian crude output rose to 9.367 million b/d, only 10,000 b/d above October levels, keeping the country 165,000 b/d below its OPEC+ ceiling as drone attacks continued to strain export logistics.
Iran Rolls Out New Gasoline Subsidy System
Tehran implemented its revised pricing regime, keeping the first 60 liters per month at $0.35/liter, while any additional volumes will now cost double, aiming to curb domestic demand and reduce smuggling.
South Sudan Deploys Troops to Protect Oil Facilities
South Sudan deployed forces into Sudan’s Heglig region after the paramilitary RSF seized key oil installations.
Heglig remains vital to South Sudan’s Nile Blend exports and overall economic stability.
Alaska LNG Secures Major Federal Approval
The $44 billion Alaska LNG project received a key construction approval from U.S. regulators, enabling developer Glenfarne to pursue a final investment decision on its pipeline by late December and the broader LNG project in 2026.
Bolivia Launches Energy Sector Overhaul
Newly elected president Rodrigo Paz has ordered the arrest of former president Luis Arce and opened investigations into alleged corruption at state oil firm YPFB, including claims that several million barrels of gasoline were misallocated or stolen.
Saudi Firms Move Into Syria’s Upstream Sector
Damascus signed four upstream exploration deals with unnamed Saudi companies, seeking to boost production from current levels toward 400,000 b/d, a fourfold increase if successful.
China to Regulate Steel Exports With Licensing Regime
China announced a new steel export license system effective in 2026, responding to weakening domestic demand.
Exports for January–November 2025 rose 7% year-on-year to 108 million tonnes, prompting Beijing to tighten controls.
Teck–Anglo Megamerger Clears Shareholder Vote
Shareholders of Anglo American and Teck Resources approved their landmark merger with over 99% support.
The combined entity will be headquartered in Vancouver and listed on the London Stock Exchange.
U.S. Oil Production Trends: Latest Data Integrated
The latest weekly data shows U.S. crude output rising to 13.853 million b/d for the week ending December 5, up 38,000 b/d from the previous week.
| Week | Output (mb/d) |
|---|---|
| Dec 5 | 13.853 |
| Nov 28 | 13.815 |
| Nov 21 | 13.814 |
| Nov 14 | 13.834 |
| Nov 7 | 13.862 |
| Oct 31 | 13.651 |
Annual trends indicate the U.S. is on track for its highest-ever production year:
- 2025: ranges from 13.1–13.8 mb/d
- 2024: around 13.0–13.4 mb/d
- 2023: 12.6–13.3 mb/d
- 2022: 11.3–12.0 mb/d
- 2021: 9.9–11.4 mb/d
The steady upward trajectory reinforces America’s position as the world’s largest crude producer.