Oil prices remained stuck in a narrow range this week, with Brent hovering around $63 per barrel.
Friday, December 05, 2025
Oil prices remained rangebound this week, with ICE Brent still hovering around $63 per barrel, as the markets digested news of higher Russian oil export loadings in December and potential military action in Venezuela. On the physical side, the curtailment of Kazakhstan’s CPC Blend exports has been the main bullish factor, however its effect was largely offset by Saudi Arabia’s weak pricing into January, indicating Asian demand signals might be lukewarm for January-February 2026.
Saudi Aramco Slashes January Oil Prices. Saudi Aramco has lowered its Asia-bound January official selling price for its grades by 20-60 cents per barrel compared to December, setting its flagship Arab Light grade at a mere $0.60 per barrel premium to Oman/Dubai, the lowest since January 2021.
Chinese Teapots Are Buying Iranian Oil in Storage. According to Reuters, Chinese independent refiners in Shandong province have been buying huge volumes of Iranian crude, sold at discounts of more than $8 per barrel vs Brent all from bonded storage as Beijing issued the last 2025 import quota last month.
Chevron Doubles Down on Australian Gas. US oil major Chevron (NYSE:CVX) announced that its partners in the Gorgon I have approved the $2 billion Stage 3 expansion of the Gorgon LNG project off Australia’s northwestern coast, tapping into the Geryon and Eurytion fields.
Thailand Sets New Climate Goals. The Thai government has reached an in-principle approval for its draft climate change bill this week, agreeing to set up a state-controlled climate fund that would be funded by a new domestic Emission Trading Scheme (ETS) and a carbon border tax mechanism.
Turkey Extends Russian Gas Deal. Turkey’s state-controlled gas firm BOTAS has agreed to extend its natural gas import deal with Russia’s Gazprom for another year, locking in 16 bcm of supply via the Blue Stream pipeline and 6 bcm from the first train of the Turkish Stream conduit.
Chile Signs $12 Billion Deal with Argentina. Chile’s ENAP has signed a term deal with Argentina’s largest oil producers – YPF, Vista Energy, Shell and Equinor – to buy some $12 billion worth of crude oil from Vaca Muerta over the next 7 years, meeting 35% of the company’s total requirements.
China Boosts Gas Storage Capacity. China’s oil giant PetroChina (SHA:601857) has purchased three natural gas storage companies for $5.7 billion, one of the largest industry M&A deals in 2025, seeking to improve its geographic coverage and capacities for gas-driven power peak-shaving.
US Naphtha Supply to Venezuela Restarts. US oil major Chevron (NYSE:CVX) has booked an oil product tanker to carry naphtha to Venezuela, the first such voyage since Donald Trump reissued a sanctions waiver in May 2025, defying the US administration’s ongoing saber-rattling vis-a-vis Nicolas Maduro.
EU Formalizes Russian Energy Phase Out. EU member states and the European Parliament have agreed on the legal text to ban imports of Russian LNG by end-2027 and inflows of Russian pipeline gas by September 2027, with a vote on the draft expected in the December 15-18 plenary session.
CPC Terminal Damage Cuts Kazakh Output. Ukraine’s drone strikes on the CPC Terminal in Russia’s Black Sea coast have forced oil producers in Kazakhstan to curb production, with output now averaging 1.9 million b/d or some 200,000 b/d lower than the country’s previous levels.
Congress Repeals Biden’s Alaska Limits. The US Senate voted 49-45 to approve a resolution that revokes all Biden-era limits on developing Alaska’s 1.56-million-acre Coastal Plain of the Arctic National Wildlife Refuge, paving the way for Trump’s planned 2026 licensing rounds.
Citi Bull Outlook Lifts Copper Prices. Copper prices jumped to a record high of $11,705 per metric tonne in London and $13,125/mt in Shanghai, after Citi published its copper outlook that expects the transition metal to average around $13,000/mt by Q2 2026, up by $1,000 from their previous forecast.
Saudi Giant Gas Project Fires Up. Saudi Arabia’s $100 billion Jafurah gas project has started production, as per the country’s finance ministry, with initial output pegged at 450 MMcf/d as state oil firm Saudi Aramco (TADAWUL:2222) taps into 229 TCf of sour gas reserves and 75 billion barrels of condensate.
By Tom Kool for Oilprice.com
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