Oil sentiment has turned sour despite a Fed rate cut and the Trump administration’s aggressive tanker seizures. Friday, December 12, 2025 The US Federal Reserve has lowered the federal funds rate to 3.50-3.75%, the Trump administration has seized a Venezuelan VLCC and promised to take over more, yet the sentiment in the markets has soured this week, with ICE Brent trading slightly above $61 per barrel. It remains to be seen whether it’s trepidation before a potential Russia-Ukraine peace deal or an ...

Oil Market Overview - Oil prices remained rangebound this week, with ICE Brent hovering around $63 per barrel as markets reacted to higher Russian oil export loadings and potential military action in Venezuela [2] - The curtailment of Kazakhstan's CPC Blend exports has been a bullish factor, but this was offset by Saudi Arabia's weak pricing for January, indicating lukewarm Asian demand signals for January-February 2026 [2] Saudi Aramco Pricing Strategy - Saudi Aramco has reduced its January official selling price for Asia-bound grades by 20-60 cents per barrel compared to December, with the Arab Light grade set at a $0.60 per barrel premium to Oman/Dubai, the lowest since January 2021 [3] Chinese Oil Purchases - Chinese independent refiners in Shandong province have been purchasing large volumes of Iranian crude at discounts exceeding $8 per barrel compared to Brent, sourced from bonded storage following the last 2025 import quota issued by Beijing [4] Chevron's Investment in Gas - Chevron announced the approval of a $2 billion Stage 3 expansion of the Gorgon LNG project off Australia's northwestern coast, focusing on the Geryon and Eurytion fields [5] Turkey's Gas Deal with Russia - Turkey's BOTAS has extended its natural gas import deal with Gazprom for another year, securing 16 billion cubic meters (bcm) of supply via the Blue Stream pipeline and 6 bcm from the Turkish Stream conduit [6] Chile-Argentina Oil Agreement - Chile's ENAP has signed a $12 billion term deal with Argentina's major oil producers, including YPF, Vista Energy, Shell, and Equinor, to purchase crude oil from Vaca Muerta over the next 7 years, fulfilling 35% of the company's total requirements [7] PetroChina's Gas Storage Acquisition - PetroChina has acquired three natural gas storage companies for $5.7 billion, marking one of the largest M&A deals in 2025, aimed at enhancing its geographic coverage and capacities for gas-driven power peak-shaving [8]

Saudi Arabia is expected to slash the prices for its crude bound for Asia in January to the lowest premium to benchmarks in five years, as the world’s largest crude exporter looks to preserve market share amid ample supply and falling spot Middle East benchmarks. Saudi oil giant Aramco will likely reduce the official selling price (OSP) of its flagship Arab Light crude grade by $0.30-$0.40 per barrel to a premium of $0.60-$0.70 a barrel to the average Oman/Dubai benchmark for loadings to Asia in January, ...

Core Viewpoint - Saudi Arabia has significantly reduced its official selling price (OSP) for crude oil to Asia in December, following the OPEC+ decision to halt output increases in early 2026 [1][3]. Group 1: Price Adjustments - Saudi Aramco will sell its "Arab Light" grade to Asian buyers at a premium of $1.00 per barrel above the Oman/Dubai average for December, a decrease of $1.20 from November [2]. - The Arab Medium and Arab Heavy grades were each cut by $1.40 to premiums of $0.05 and $0.10 per barrel, respectively, while the Arab Extra Light grade saw a drop of $1.20 to a premium of $1.30 per barrel [2]. Group 2: Market Dynamics - The price adjustments reflect a well-supplied Asian market with increasing crude volumes and Saudi Arabia's aim to maintain competitiveness and market share [4]. - The price cut provides a more attractive feedstock cost for Asian refiners, potentially stimulating increased term nominations or spot buying of Saudi crude [5]. Group 3: Demand and Supply Outlook - Traders are closely monitoring demand from Asian refiners for December, particularly whether spot flows of Saudi barrels will increase [6]. - The lower premium also indicates concerns about future demand and the risk of oversupply in the market [5].