US oil prices fell to nearly a five year low early this past week, before partly rebounding after Trump imposed a naval blockade on socialist oil leaving Venezuela... after falling 4.4% to $57.44 a barrel last week on fears that an end to the war in Ukraine and to sanctions on Russian oil would exacerbate the global oil glut, the contract price for the benchmark US light sweet crude for January delivery rose in Asian trading on Monday, as concerns over potential production disruptions stemming from escalating tensions between the United States and Venezuela outweighed ongoing worries about oversupply and the possible impact of a peace agreement between Russia and Ukraine, but stabilized in early US trading, as traders began to factor in the risk that additional Russian barrels could reenter global markets at a moment when demand growth is still subdued, then sold off during the afternoon session to settle 62 cents lower at $56.82 a barrel, as traders balanced disruptions linked to escalating U.S.-Venezuelan tensions with oversupply concerns and the potential impact of a Russia Ukraine peace deal…oil prices continued to fall in early Asian trading on Tuesday, as growing optimism around Russia-Ukraine peace talks and disappointing economic indicators out of China undercut market sentiment, reinforcing downside pressure on crude benchmarks, then fell to levels not seen since the start of 2021 as a widely expected supply glut picked up momentum and peace talks in the Russia-Ukraine conflict moved forward, and settled $1.55 or 2.7% lower at $55.27 a barrel, their lowest level since early February 2021 … oil prices rose in Asian trading on Wednesday morning, as supply concerns increased after US President Donald Trump ordered a “complete and total” blockade of sanctioned oil tankers moving in and out of Venezuela, then surged more than 2% on global markets, as the news of the naval blockade targeting Venezuela’s oil exports rattled energy markets and sent shockwaves through global finance, and settled the US session 67 cents or 1.2% higher at $55.94 a barrel, as the US blockade of all oil tankers under sanctions entering and leaving Venezuela eased concerns about a swelling surplus of global crude…oil prices rose by another dollar in Asian trading on Thursday, following the U.S. president’s announcement of a blockade on oil tankers entering and leaving Venezuela, amid continued disruption of most of the country’s exports, then climbed again early during the US session as a second day of a U.S. naval blockade on Venezuela lent support to a market otherwise thin on news, before settling just 21 cents higher at $56.15 a barrel as traders assessed the likelihood of further U.S. sanctions against Russia and the supply risks posed by a blockade of Venezuelan oil tankers…oil prices were lower in Asia on Friday, as traders continued to digest the growing prospects of a peace deal between Russia and Ukraine, offsetting concerns about supply disruption in the midst of simmering tension between the US and Venezuela, but were little changed during early US trading, as the market waited for news about a possible Russia-Ukraine peace deal and for interest rate decisions from central banks around the world, but rallied late to settle 51 cents, or 0.9% higher at $56.66 per barrel after Trump told NBC News that he wouldn’t rule out war with Venezuela, but still finished 1.4% lower for the week, after hitting a 58 month low on Tuesday…
Meanwhile, natural gas prices fell for a second consecutive week, after rising 7 consecutive weeks before that, largely on continued forecasts for mild weather until January, reducing demand with plenty of gas still in storage for the winter….after falling 22.2% to $4.113 per mmBTU last week, the largest weekly drop since November 29, 2021, after weather forecasts were revised to indicate above normal temperatures for the 2nd half of December, the price of the benchmark natural gas contract for January delivery opened 1.7 cents lower on Monday and fell to an intraday low of $3.993 by 9:45AM, as traders sought direction following another bearish shift in weather forecasts over the weekend, and fluctuated within that opening price range for the balance of the session, before settling 10.1 cents lower at a six week low of $4.012 per mmBTU, on forecasts for milder weather over the next two weeks than had been expected, near-record output, ample amounts of gas in storage, and recent declines in gas prices around the world…natural gas prices opened 9.1 cents lower on Tuesday, knocked down overnight as the impeding December thaw drew closer, and struggled to mount a recovery before fading in afternoon trading to settle 12.6 cents lower at $3.886 per mmBTU, after weather models stripped out significant late December heating demand and cash prices sunk…natural gas prices opened 13.5 cents higher on Wednesday, jumping higher overnight despite no change to market fundamentals, and traded in a narrow range around that level before settling 13.8 cents higher at $4.024 per mmBTU, on near-record gas flows to LNG export plants and on forecasts for more demand next week than was previously expected…natural gas prices opened 14.3 cents higher on Thursday, after extending the previous session’s oversold rally overnight, then traded near $4.130 ahead of the weekly storage report, before dropping to trade around $4.065 after the slightly bearish publication hit the wire, and then tumbled during afternoon trading to settle 11.6 cents lower at $3.908 per mmBTU, as milder weather forecasts were expected to reduce natural gas demand in the coming weeks…an attempt by natural gas futures to claw higher fizzled early Friday, as weak demand expectations and a slowdown in storage draws continued to pressure the market, but then edged higher through midday, even as weak demand and robust production continued to feed bearish sentiment, and settled 7.6 cents higher at $3.984 per mmBTU on near-record flows flows to LNG export facilities, but still ended 3.1% lower for the week…
The EIA’s natural gas storage report for the week ending December 12th indicated that the amount of working natural gas held in underground storage fell by 167 cubic feet to 3,579 billion cubic feet by the end of the week, which left our natural gas supplies 61 billion cubic feet, or 1.7% less than the 3,640 billion cubic feet of gas that were in storage on December 12th of last year, but 32 billion cubic feet, or 0.9% more than the five-year average of 3,547 billion cubic feet of natural gas that had typically been in working storage as of the 12th of December over the most recent five years….the 167 billion cubic foot withdrawal from natural gas storage for the cited week was in line with the 169 billion cubic foot withdrawal from storage that analysts had forecast in a Reuters poll ahead of the report, but was more than the 134 billion cubic foot of gas that were pulled out of natural gas storage during the corresponding week of 2024, and was quite a bit more than the average 96 billion cubic foot withdrawal from natural gas storage that had been typical for the same early December week over the past five years…
The Latest US Oil Supply and Disposition Data from the EIA
US oil data from the US Energy Information Administration for the week ending December 12th indicated that after a sizable increase in our oil exports and a modest increase in our oil refining, we had to pull oil out of our stored crude supplies for the 21st time in forty-five weeks, and for the 34th time in seventy-five weeks, in spite of a big increase in oil supply that the EIA could not account for….Our imports of crude oil fell by an average of 64,000 barrels per day to average 6,525,000 barrels per day, after rising by an average of 609,000 barrels per day over the prior week, while our exports of crude oil rose by an average of 655,000 barrels per day to average 4,664,000 barrels per day, which, when used to offset our imports, meant that the net of our trade of oil worked out to an import average of 1,861,000 barrels of oil per day during the week ending December 12th, an average of 719,000 fewer barrels per day than the net of our imports minus our exports during the prior week. At the same time, transfers to our oil supplies from Alaskan gas liquids, from natural gasoline, from condensate, and from unfinished oils were 76,000 barrels per day higher at 681,000 barrels per day, while during the same week, production of crude from US wells was 10,000 barrels per day lower than the prior week at 13,843,000 barrels per day. Hence, our daily supply of oil from the net of our international trade in oil, from transfers, and from domestic well production appears to have averaged a total of 16,385,000 barrels per day during the December 12th reporting week…
Meanwhile, US oil refineries reported they were processing an average of 16,988,000 barrels of crude per day during the week ending December 12th, an average of 129,000 more barrels per day than the amount of oil that our refineries reported they were processing during the prior week, while over the same period, the EIA’s surveys indicated that a net average of 146,000 barrels of oil per day were being pulled out of the supplies of oil stored in the US… So, based on that reported & estimated data, the crude oil figures provided by the EIA appear to indicate that our total working supply of oil from storage, from net imports, from transfers, and from oilfield production during the week ending December 12th averaged a rounded 456,000 fewer barrels per day than what our oil refineries reported they used during the week. To account for the difference between the apparent supply of oil and the apparent disposition of it, the EIA just plugged a [ -+456,000 ] barrel per day figure onto line 16 of the weekly U.S. Petroleum Balance Sheet, in order to make the reported data for the supply of oil and for the consumption of it balance out, a fudge factor that they label in their footnotes as “unaccounted for crude oil”, thus indicating there must have been an error or omission of that magnitude in this week’s oil supply & demand figures that we have just transcribed.…moreover, since 402,000 barrels per day of demand for oil supplies not be accounted for in the prior week’s EIA data, that means there was a 859,000 barrel per day difference between this week’s oil balance sheet error and the EIA’s crude oil balance sheet error from a week ago, and hence the changes to supply and demand from that week to this one that are indicated by this week’s report are also off by that much, and also useless.... But since most oil traders react to these weekly EIA reports as if they were gospel, and since these weekly figures therefore often drive oil pricing and hence decisions to drill or complete oil wells, we’ll continue to report this data just as it’s published, and just as it’s watched & believed to be reasonably reliable by most everyone in the industry…(for more on how this weekly oil data is gathered, and the possible reasons for that “unaccounted for” oil supply, see this EIA explainer….also see this old twitter thread from an EIA administrator addressing these ongoing weekly errors, and what they had once hoped to do about it)
This week’s rounded 146,000 barrel per day average decrease in our overall crude oil inventories came as an average of 182,000 barrels per day were being pulled out of our commercially available stocks of crude oil, while an average of 36,000 barrels per day were being added to our Strategic Petroleum Reserve, extending the string of nearly continuous weekly additions to the SPR since September 2023, which followed nearly continuous SPR withdrawals over the 39 months prior to August 2023… Further details from the weekly Petroleum Status Report (pdf) indicated that the 4 week average of our oil imports rose to 6,383,000 barrels per day last week, which was still 1.8% less than the 6,501,000 barrel per day average that we were importing over the same four-week period last year. This week’s crude oil production was reported to be 10,000 barrels per day lower at 13,853,000 barrels per day as the EIA’s estimate of the output from wells in the lower 48 states was 9,000 barrels per day lower at 13,47,000 barrels per day, while Alaska’s oil production was 1,000 barrels per day lower at 436,000 barrels per day...US crude oil production had reached a pre-pandemic high of 13,100,000 barrels per day during the week ending March 13th 2020, so this week’s reported oil production figure was 5.7% higher than that of our pre-pandemic production peak, and was also 42.7% above the pandemic low of 9,700,000 barrels per day that US oil production had fallen to during the third week of February of 2021.
US oil refineries were operating at 94.8% of their capacity while processing those 16,988,000 barrels of crude per day during the week ending December 12th, up from the 94.5% utilization rate of a week earlier, with increasing utilization largely due to the end of routine Fall refinery maintenance….the 16,988,000 barrels of oil per day that were refined that week were 2.3% more than the 16,611,000 barrels of crude that were being processed daily during the week ending December 13th of 2024, and were 2.6% more than the 16,562,000 barrels that were being refined during the prepandemic week ending December 13th, 2019, when our refinery utilization rate was at 90.6%, which was somewhat below the pre-pandemic normal range for this time of year…
With the increase in the quantity of oil that was refined this week, gasoline output from our refineries was also higher, increasing by 33,000 barrels per day to 9,609,000 barrels per day during the week ending December 12th, after our refineries’ gasoline output had decreased by 178,000 barrels per day during the prior week.. This week’s gasoline production was 2.7% less than the 9,872,000 barrels of gasoline that were being produced daily over the week ending December 13th of last year, and also 2.7% less than the gasoline production of 9,840,000 barrels per day seen during the prepandemic week ending December 13th, 2019….on the other hand, our refineries’ production of distillate fuels (diesel fuel and heat oil) decreased by 228,000 barrels per day to 5,203,000 barrels per day, after our distillates output had increased by 380,000 barrels per day to an 83 month high during the prior week. After that big production decrease, our distillates output was still 2.1% more than the 5,094,000 barrels of distillates that were being produced daily during the week ending December 13th of 2024, and also 2.6% more than the 5,072,000 barrels of distillates that were being produced daily during the pre-pandemic week ending December 13th, 2019....
With this week’s modest increase in our gasoline production, our supplies of gasoline in storage at the end of the week rose for the fifth consecutive week, but for just the seventh time in twenty-two weeks, increasing by 4,808,000 barrels to 225,627,000 barrels during the week ending December 12th, coming after our gasoline inventories had increased by 6,397,000 barrels during the prior week. Our gasoline supplies increased by less this week because the amount of gasoline supplied to US users rose by 622,000 barrels per day to 9,078,000 barrels per day, even as our exports of gasoline fell by 94,000 barrels per day to 991,000 barrels per day, and our imports of gasoline rose by 175,000 barrels per day to 834,000 barrels per day… Even after thirty gasoline inventory withdrawals over the past forty-five weeks, our gasoline supplies were 1.6% more than last December 13th’s gasoline inventories of 222,037,000 barrels, and just slightly below the five year average of our gasoline supplies for this time of the year…
Even after this week’s big decrease in distillates production, our supplies of distillate fuels rose for the 23rd time in 48 weeks, increasing by 1,712,000 barrels to 118,500,000 barrels during the week ending December 12th, after our distillates supplies had increased by 2,502,000 barrels during the prior week.. Our distillates supplies rose by less this week even as the amount of distillates supplied to US markets, an indicator of domestic demand, fell by 372,000 barrels to 3,786,000 barrels per day, because our exports of distillates rose by 343,000 barrels per day to 1,440,000 barrels per day, while our imports of distillates rose by 87,000 barrels per day to a 43 week high of 268,000 barrels per day... With 55 withdrawals from distillates inventories over the past 98 weeks, our distillates supplies at the end of the week were 0.3% more than the 118,155,000 barrels of distillates that we had in storage on December 13th of 2024, but about 6% below the five year average of our distillates inventories for this time of the year…
Finally, even with the increase in our oil imports, our commercial supplies of crude oil in storage fell for the 13th time in twenty-six weeks, and for the 22nd time over the past year, decreasing by 1,274,000 barrels over the week, from 425,691,000 barrels on December 5th to 424,417,000 barrels on December 12th, after our commercial crude supplies had decreased by 1,812,000 barrels over the prior week… After this week’s decrease, our commercial crude oil inventories were 4% below the recent five-year average of commercial oil supplies for this time of year, while they were about 22% above the average of our available crude oil stocks as of the second weekend of December over the 5 years at the beginning of the past decade, with the big difference between those comparisons arising because it wasn’t until early 2015 that our oil inventories had first topped 400 million barrels. After our commercial crude oil inventories had jumped to record highs during the Covid lockdowns in the Spring of 2020, then jumped again after February 2021’s winter storm Uri froze off US Gulf Coast refining, but then fell sharply due to increased exports to Europe following the onset of the Ukraine war, only to jump again following the Christmas 2022 refinery freeze-offs, changes in our commercial crude supplies have generally leveled off since, and as of this December 12th were 0.8% more than the 421,016,000 barrels of oil left in commercial storage on December 13th of 2024, but were 3.7% below the 440,773,000 barrels of oil that we had in storage on December 15th of 2023, while barely changed from the 424,129,000 barrels of oil we had left in commercial storage on December 9th of 2022…
This Week's Rig Count
The US rig count was down by six over the week ending December 12th, the 5th decrease in sixteen weeks, as the number of rigs targeting oil fell by eight to 406, the lowest since Hurricane Ida shut down Gulf drilling in September 2021, while the count of rigs targeting natural gas was unchanged, and miscellaneous rigs were up by two…for a quick snapshot of this week's rig count, we are again including below a screenshot of the rig count summary pdf from Baker Hughes...in the table below, the first column shows the active rig count as of December 19th, the second column shows the change in the number of working rigs between last week’s count (December 12th) and this week’s (December 19th) count, the third column shows last week’s December 12th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running on the Friday before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting period a year ago, which in this week’s case was the 20th of December, 2024…
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BLM Plans Ohio Wayne Nat’l Forest Lease Sale for September 2026 - Marcellus Drilling News - Map of Wayne National Forest (click for larger version). Fantastic news! The Bureau of Land Management (BLM) yesterday opened a public scoping period to receive public input on 41 oil and gas parcels totaling 2,795 acres that may be included in a September 2026 lease sale in the Wayne National Forest (WNF) located in southeastern Ohio. This is the first lease sale held in WNF since March 2017 (the first Trump administration). The comment period ends Jan. 15, 2026. The properties up for lease are located in Monroe and Washington counties. We have the complete list of 41 parcels and a map of where they are located, below.
Fire causes explosion at oil well in Carroll County (WOIO) - An oil well pad exploded Tuesday morning in Carroll County, sending thick black smoke into the sky. The explosion occurred around 7 a.m. on June Road in Malvern. The fire department said they have the fire under control.No injuries have been reported. According to the department, EOG Resources was actively fracking on the pad at the time of the fire. Firefighters say the company’s protocols shut down all of their equipment following the incident.
EOG Shale Oil Pad in Carroll County, OH Explodes During Fracking - Marcellus Drilling News - An oil well pad exploded Monday morning in Carroll County, sending thick black smoke into the sky. There was an explosion around 7:00 a.m. on Tuesday, December 16, 2025, at an EOG Resources shale well pad located on June Road in Malvern (Carroll County), Ohio. A well on the pad was actively being fracked at the time of the incident, according to news reports. Fortunately, there were no injuries. The fire was contained to a vapor tank on the pad. The wellheads themselves were not involved or damaged
A New Lawsuit Alleges That the Ohio Tax Commissioner's Actions Are Unconstitutional --National Law Review -- Rover Pipeline has recently filed a complaint in Franklin County (Ohio), alleging that the Tax Commissioner’s 2019 assessment of Rover’s public utility property tax valuation violates both the Ohio and the United States Constitutions in a number of ways. This disagreement over their tax valuation was supposed to have been finalized when the Ohio Supreme Court rejected Rover’s appeals on August 13 and affirmed the decision by the Board of Tax Appeals (BTA), which valued Rover’s Ohio pipeline at $3.67 billion. Writing the opinion for the court, Justice Patrick F. Fischer noted that “[b]ecause we are not a ‘super board of tax appeals,’ we do not reweigh the board’s determination.” The court emphasized that its role was limited to determining whether any statutes were violated by the tax authorities, rather than wading into the merits of Rover’s argument. The 713-mile Rover pipeline was built to transfer gas from processing plants in Ohio, Pennsylvania, and West Virginia to markets across the country and as far north as Ontario, Canada. Rover has claimed that, despite its best efforts and professional advice, its budgeting could not have anticipated rainfall 60% higher than historical averages during construction or a four-month pause following a contractor’s environmental mishap. These substantial delays pushed the final construction cost of the pipeline to $6.3 billion – more than 50% higher than the $4.08 billion that was budgeted. To gain approval for the project from the Federal Energy Regulatory Commission (FERC), Rover entered into 15-year contracts with shippers that capped profits at 13% of their projected investment. Ensuring that they’re taxed at the true value of the pipeline, which Rover argues should not include cost overruns, becomes even more important in maintaining profitability. So far, Rover has found no relief for its claim that its tax liability has been substantially inflated. Rover’s new complaint notes that its treatment runs counter to precedent, where the “state promised property owners a fair deal”: to be taxed on the true value of a property – defined as the price determined by the open market. From Rover’s perspective, a willing buyer would not replicate the excess costs, due primarily to unforeseen weather conditions, if building a replacement pipeline. Justice Fischer noted that the Tax Commissioner was free to exclude these unanticipated costs if she felt another method better determined the “‘true value of the public utility’s taxable property.’” The Tax Commissioner, however, faulted Rover for not budgeting for “rainy weather” or anticipating the regulatory actions that inflated their construction costs. Justice Fischer clarified that the Ohio Supreme Court saw the case as simply “a battle of appraisals,” and although Rover highlighted important legal questions on valuation doctrines, the relevant statutes afforded the BTA wide latitude in weighing competing evidence. Without any clear abuse of discretion by the Tax Commissioner or the BTA, the court affirmed the previous rulings. While the courts could not fully engage Rover’s challenge on valuation because of the statutory latitude granted to the BTA, framing the complaint as a constitutional violation may open an avenue to analyze the Tax Commissioner’s decisions. Article XII, §2 of the Ohio Constitution states that “[n]o property, taxed according to value, shall be so taxed in excess of one per cent of its true value in money for all state and local purposes.” In its latest filing, Rover acknowledges that the statutory provisions do not foreclose the tax commissioner taking an unprecedented approach to property valuation by including unnecessary construction costs in their calculations. However, Rover argues that the commissioner departed from long-standing legal guidance from the courts by including unforeseeable cost overruns in their determination of true value, thereby violating the due process guarantee of fair notice. In fact, Rover’s complaint alleges multiple constitutional violations in Ohio’s approach to the valuation of its pipeline. The absence of advance notice that the tax commissioner would treat cost overruns as determinative of the pipeline’s value, or that the tax commissioner would discount how depreciation alters true value, violates the Fourteenth Amendment’s due process guarantee of fair notice. By inflating its tax liability, Rover argues, the state violates the Fifth Amendment’s Takings Clause. Rover also states that the tax commissioner’s approach runs afoul of the Dormant Commerce Clause of the U.S. Constitution that prohibits undue state interference with interstate commerce.
Ohio Tax Controversy Puts Key Energy Infrastructure At Risk – Forbes - Property taxes from the oil and gas sector are vitally important to communities in Ohio and other states, helping to pay for schools, first responders, road maintenance, and other key elements of any civil society. But the Ohio Tax Commissioner’s Office is putting the future of this vital funding stream at risk through its aggressive approach to determining the tax liability of a critical infrastructure project in the state.The need for expanded and improved physical infrastructure related to energy and other aspects of society is pressing across the country, and Ohio is no exception. This is why the federal government in this second presidency of Donald Trump has focused on a “Build, Baby, Build” program instead of the replay of his first term “Drill, Baby, Drill” agenda many were expecting last January. Controversies like the one related to a key natural gas pipeline in Ohio threaten to stall that agenda in the Buckeye StateOhio normally assesses property taxes based on the property’s true value, meaning what it is worth on the open market to a willing buyer. But a lawsuit filed recently by Rover Pipeline LLC alleges that the state’s Tax Commissioner has discarded that principle in an effort to inflate the pipeline’s value and extract more tax funding from the pipeline’s owner. Rover argues that this approach violates both the Ohio and U.S. Constitutions.The Rover pipeline, completed in 2018, travels through 18 Ohio counties connecting shale gas basins in Pennsylvania, West Virginia and eastern Ohio to areas in Ohio and other states where gas is needed to generate electricity and heat homes.During the pipeline’s construction, the company encountered lengthy weather-related delays due to rainfall totals that were 60 percent higher than historical averages. This excessive rainfall frequently kept work crews busy pumping water out of ditches instead of laying pipeline. It required additional inspections to ensure erosion had not impacted work sites, and delayed welding crews that could only operate during extended, uninterrupted periods without rain. These substantial weather delays helped push the final construction cost of the pipeline to $6.3 billion, more than 50 percent higherthan the $4.08 billion that was budgeted. But in assessing property taxes on the pipeline, the Ohio Tax Commissioner treated the expensive construction delays as adding to the pipeline’s market value and thus inflating the company’s property taxes. This determination defies common sense and stands at odds with sound business practices governing the proper valuation of assets.Simply put, added costs due to construction delays are not indicative of a property’s real market value. If a builder plans to construct a house for $300,000 and weather delays drive the cost up to $350,000, the $50,000 in excessive costs doesn’t magically increase what a buyer might be willing to pay for it when the house is put up for.Ohio’s Constitution and case law explicitly – and sensibly - state that property is to be taxed solely on the value of what a willing buyer would pay on the open market. Weather delays made the pipeline more expensive to the developer for sure, but they did not make the asset more valuable to a potential buyer.
Will-Power to Build Third Facebook Gas-Fired Plant Near Toledo - Marcellus Drilling News - In early April, MDN brought you the exciting news that pipeline giant Williams, via its newly-minted subsidiary, Will-Power, is planning to build two Utica/Marcellus gas-fired power plants in the New Albany International Business Park in Licking County, Ohio, near Columbus, to power a massive new Meta (Facebook) data center complex (see Williams Subsidiary Unveils Plans for Gas-Fired Power Plant in Ohio). Construction has begun on those projects. Now comes word that Will-Power will build another (third) large gas-fired power plant project for Meta, this one in Bowling Green, OH, near Toledo.
Natural gas power plant proposed next to Wood County data center site --Filed under an accelerated Ohio Power Siting Board process, the project could be automatically approved in early February.— A company tied to a major natural gas operator has filed a Letter of Notification with the Ohio Power Siting Board to build a large natural gas–fired power plant in Wood County, immediately adjacent to a massive data center complex now under construction in Middleton Township. The project, called the Apollo Power Generation Facility, was formally filed with the Ohio Power Siting Board on Nov. 5, 2025, under the accelerated Letter of Notification review process. Under that process, the facility could be automatically approved as early as Feb. 3, 2026, if board members raise no additional concerns. According to the filing, the project would include a 350-megawatt natural gas–fired simple-cycle power plant, along with a large battery energy storage system and an electrical connection to nearby facilities.The applicant, Will-Power OH, LLC, is a subsidiary of The Williams Companies, a Tulsa-based energy infrastructure firm. The filing states the power plant would operate as a “behind-the-meter” facility, meaning it would generate electricity directly for a single customer rather than selling power onto the regional grid.The application says the plant is intended to provide electricity for the customer’s “digital infrastructure facilities.” The customer is not named in the filing, which the applicant attributes to a nondisclosure agreement. While the application does not identify the customer, it states the power plant would be built “immediately adjacent” to the customer’s facilities to meet the customer’s construction and operational timeline.The proposed site is located along State Route 582 between Interstate 75 and Route 25, next to the large data center campus currently under construction in Middleton Township.The filing does not identify the customer by name, but the proposed plant location is adjacent to the data center site that has been publicly announced as a Meta project by state and local officials.The application also notes that part of the project - including the electrical “gen-tie” connection - would be built on property controlled by the customer through an easement. The project is being reviewed under the Ohio Power Siting Board’s accelerated Letter of Notification (LON) process and does not require approval from the Public Utilities Commission of Ohio. The accelerated review applies because the plant would generate electricity only for a single customer and would not sell power to the public.According to Matt Butler, public information officer for the Ohio Power Siting Board, the board’s technical staff is expected to release its report of investigation on Jan. 27, 2026, outlining findings and recommendations. If no board member requests further review or raises concerns, the project would be deemed automatically approved on Feb. 3, 2026. Public notice of the project was published in the Bowling Green Sentinel-Tribune newspaper on Nov. 8, triggering a 10-day window for public comments and motions to intervene with the Ohio Power Siting Board. That window closed on Nov. 18. The filing indicates the power plant would be supplied by two 16-inch natural gas pipelines for reliability. Those pipelines are not included in this filing and would require separate filings and approvals with the Ohio Power Siting Board. Construction of the power plant itself is anticipated to begin in early 2026, with a portion of the generating capacity expected to be operational by mid-2027, and full capacity by late 2027.
Damaged gas line in downtown Toledo prompts evacuation of buildings, road closure — A damaged gas line forced the evacuation of businesses and residents in some downtown Toledo buildings on Thursday morning. According to Columbia Gas, crews were alerted to the damaged gas line on Jefferson Avenue around 9:15 a.m. The company said businesses and residents in the area were evacuated "out of an abundance of caution," but have since been allowed back in their buildings. "Our crews are still on the scene working to make repairs, which necessitated the temporary interruption of natural gas service to several properties on Jefferson Avenue. Our crews are currently working to restore service to the impacted customers," a spokesperson from Columbia Gas said. The company said North Ontario Street is currently shut down between Jefferson Avenue and Monroe Street and is asking the public to avoid the area, if possible.
Cleveland Water Department truck falls into sinkhole and breaks gas line on Cleveland's West Side (WOIO) - A Cleveland Water Department truck working on a water main break in Ohio City was partially swallowed up into a sinkhole, breaking a gas line underneath the street. The incident occurred near West 28th Street and Chatham Avenue late Thursday afternoon. There was no fire or injuries, according to Lt. Michael Norman of the Cleveland Fire Department. The gas company is on scene working to fix the leak.
Ohio State U. Gas-Fired Power Plant Completion Delayed *Again* - Marcellus Drilling News - In October, we told you that completion of Ohio State University’s Combined Heat and Power Plant (powered with Utica Shale gas) would be delayed until April 2026 (see Ohio State U. Gas-Fired Power Plant Completion Delayed Until 2026). Strike that. It will now be May 2026, at the earliest, before the facility comes online. Ohio State University (OSU) is constructing two natural gas combustion turbine generators and one steam turbine generator with a maximum power generating capacity of 105.5 megawatts of electricity and 285 kilopounds per hour of steam. It’s being built on 1.35 acres at OSU’s main campus in Franklin County (see OH Approves Gas-Fired Power Plant for OSU – Antis Pledge to Fight).
NFG Sells $350M in Stock to Help Fund CenterPoint Ohio Purchase- Marcellus Drilling News - In October, National Fuel Gas Company, a large utility company headquartered in the Buffalo, NY area with both upstream and midstream subsidiaries (Seneca Resources and NFG Midstream), announced a deal with CenterPoint Energy to acquire CenterPoint’s Ohio natural gas utility business (CNP Ohio) for $2.62 billion (see NY’s NFG to Acquire CenterPoint’s Ohio NatGas Utility Business $2.6B). The deal includes 5,900 miles of distribution and transmission pipelines and serves approximately 335,000 residential, commercial, industrial, and transportation customers that consume approximately 60 Bcf of natural gas per year. The deal significantly increases NFG’s gas utility customer base, from roughly 750,000 to well over 1 million. NFG announced yesterday that it is floating approximately 4.4 million shares of new common stock at a purchase price of $79.50 per share (generating $350 million) to help pay for the deal.
Ohio Natural Gas Balance Shifts With Rising Power Generation Demand | RBN Energy - Annual average Ohio natural gas production (blue line in graph) dropped from 7.1 Bcf/d in 2017 to 5.7 Bcf/d in 2024 - a decline of 1.4 Bcf/d. Over the same period, power generation demand in the state (yellow stacked area) rose by 0.6 Bcf/d. Those two factors combined to reduce net outflows from the state (red line) from 3.5 Bcf/d to 1.6 Bcf/d. According to RBN's Natgas Appalachia report, Ohio production this week is averaging right at about 5 Bcf/d, leaving westbound pipelines just over 65% utilized. Albeit, part of that is due to increased seasonal regional demand, as shown in the graph above it's also an annual trend resulting from higher regional demand for power and lower production. As we recently documented in Take Me Home, Country Roads, leading gas producer, Antero, sold their Ohio acreage to Infinity Natural Resources and Northern Oil & Gas (NOG) for $800 million. The parties also agreed to a $400 million price tag for the related midstream assets. With new operators, higher regional power generation demand, available pipeline capacity, and, of course, with higher anticipated natural gas prices, there's potential for Ohio production to begin to accelerate once again.
Hedge Fund Mason Capital Makes Play to Buy Ascent Resources - Marcellus Drilling News -- Ascent Resources, formerly American Energy Partners, is a privately held company focused 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The largest shareholder in the privately owned company is the private equity firm Energy & Minerals Group (EMG), with an “over 30% stake.” EMG wants to sell that stake in one of its portfolio companies to another EMG company. Another (smaller) investor, the Abu Dhabi Investment Council, sued to block the transfer, alleging a “conflicted sale” that will short-change existing investors (see EMG, Which Owns 30% of Ascent Resources, Blocked from Selling). The plot thickens. Another long-time investor, Mason Capital Management (a hedge fund), sent a letter to Ascent's board offering to buy all outstanding shares in the company for cash at a price "superior to that contemplated by the EMG transaction."
Investor group Kimmeridge offers $6bn for gas driller at centre of clash - Financial Times - Energy PE firm says its offer is superior to proposed fund-to-fund transfer that led to accusations of self-dealing.
Kimmeridge Joins Ascent Resources Bidding War with $6B Offer - Marcellus Drilling News - The bidding war is heating up for those interested in buying Ascent Resources, a privately held company focused 100% on the Ohio Utica Shale. Ascent is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. Kimmeridge Energy, a private investment firm focused on the energy sector (sometimes called an "activist investor" and/or corporate raider), has put an offer on the table to buy out and take over Ascent: $6 billion. This is the first hard number we've seen since the whole bidding war began last week.
Northern Oil and Gas expands natural gas hedging after Ohio Utica deal - Northern Oil and Gas, Inc. (NYSE:NOG) has significantly increased its natural gas hedging positions following its recently announced joint acquisition in Ohio’s Utica region, according to a company statement released Wednesday. The $2.1 billion market cap company, which InvestingPro analysis indicates is currently undervalued, is making strategic moves despite carrying a debt load of $2.3 billion. The independent energy company has added substantial gas hedges, with 2026 and 2027 natural gas hedge volumes now representing approximately 60% and 30%, respectively, of its third-quarter 2025 annualized natural gas production when adjusted for the Utica transaction. NOG has secured over 35,400 barrels per day of oil with a swap price exceeding $68.70 and a weighted average collar floor of $63.84. For natural gas, the company has hedged approximately 267,500 MMBtu per day for 2026 through a combination of swaps at $4.06 and collars between $3.43 and $4.98. The 2027 hedging program includes an average of 124,315 MMBtu per day of natural gas. The company pays a substantial 8.3% dividend yield and has raised its dividend for five consecutive years, providing shareholders with consistent income.The company has also established M2 and REX Z3 basis hedges and added select natural gas hedges extending into 2028 and 2029. Since the end of the third quarter, NOG reports it has made only nominal changes to its oil hedges.The hedging strategy aligns with NOG’s stated policy of protecting its capital program by periodically entering into financial derivative instruments with counterparties to secure future commodity prices on a portion of its expected production. This approach appears prudent given the stock has taken a significant hit, dropping 11.9% over the past week, though it trades at a modest P/E ratio of 11.8. Northern Oil and Gas focuses primarily on acquiring and investing in non-operated minority working and mineral interests in hydrocarbon-producing basins within the contiguous United States. The company remains profitable over the last twelve months with a current ratio of 1.1. The company achieved an earnings per share of $1.03, outperforming the forecasted $0.92. Revenue figures also surpassed projections, reaching $556.64 million compared to the anticipated $521.83 million. In addition to the earnings report, Northern Oil and Gas announced a significant acquisition. The company has agreed to acquire a 49% stake in Ohio Utica Shale assets for $588 million in cash. This acquisition is part of a larger $1.2 billion transaction with an unnamed partner and includes both upstream assets and midstream infrastructure. These recent developments highlight Northern Oil and Gas’s strategic moves in expanding its asset base and financial performance.
Infinity Natural Resources Publishes Updated Hedge Positions -Infinity Natural Resources, Inc. today provided an update on its hedge positions as of December 12, 2025. In the first week following the announcement of the acquisition of Ohio Utica Shale assets from Antero Resources Corporation (NYSE: AR) and Antero Midstream Corporation (NYSE: AM) (the “Transaction”), the Company significantly increased its hedge book to manage commodity price volatility related to the acquisition and provide financial stability through commodity price cycles. The Company added hedges with respect to 131,630,000 MMBtu of natural gas through 2030 with an average Henry Hub price of $4.21 per MMBtu in 2026 and $3.94 per MMBtu in 2027.The Company’s updated hedge information can be found in a presentation posted on the “Events & Presentations” section of the Company’s investor relations website at https://ir.infinitynaturalresources.com/. Infinity is a growth oriented, free cash flow generating, independent energy company focused on the acquisition, development, and production of hydrocarbons in the Appalachian Basin. Our operations are focused on the Utica Shale in eastern Ohio as well as our stacked dry gas assets in both the Marcellus and Utica Shales in southwestern Pennsylvania.
NFG Sells $350M in Stock to Help Fund CenterPoint Ohio Purchase -- Marcellus Drilling News - In October, National Fuel Gas Company, a large utility company headquartered in the Buffalo, NY area with both upstream and midstream subsidiaries (Seneca Resources and NFG Midstream), announced a deal with CenterPoint Energy to acquire CenterPoint’s Ohio natural gas utility business (CNP Ohio) for $2.62 billion (see NY’s NFG to Acquire CenterPoint’s Ohio NatGas Utility Business $2.6B). The deal includes 5,900 miles of distribution and transmission pipelines and serves approximately 335,000 residential, commercial, industrial, and transportation customers that consume approximately 60 Bcf of natural gas per year. The deal significantly increases NFG’s gas utility customer base, from roughly 750,000 to well over 1 million. NFG announced yesterday that it is floating approximately 4.4 million shares of new common stock at a purchase price of $79.50 per share (generating $350 million) to help pay for the deal.
EOG Resources Sets Its Sights On Growth And Payouts In 2026 - EOG Resources is rolling out an updated playbook for the coming years, combining steady oil production with a bold ramp-up in natural gas and international drilling. Even after a lackluster 2025 for its shares, UBS calls EOG one of the sector’s standouts, crediting strong capital returns and a robust balance sheet. The addition of Encino’s Utica Shale assets and new projects in the Middle East are driving capital spending higher—up to $1.65 billion—which signals EOG’s confidence in both US and international growth. While fourth-quarter cash flow per share will likely miss consensus estimates, next year looks brighter, with cost savings in Utica and fresh wells set to lift margins and volumes for natural gas. UBS also expects EOG to use its liquidity for about $500 million in share buybacks this quarter, and with no debt coming due until 2030, the company can keep rewarding investors while expanding its footprint.EOG’s dual focus on US shale and international projects like those in the Middle East is building a more resilient business, less tied to any single market. By looking abroad and embracing natural gas, EOG is aligning itself with shifting global energy demand—and ensuring it can pivot no matter how the market changes.
EOG's Purchase of Encino Utica "Shocked" Houston Big Oil in 2025 -- Marcellus Drilling News --Earlier this year, Houston-based EOG Resources acquired Encino Acquisition Partners for $5.6 billion, establishing the Utica Shale as a "third foundational play" alongside its Permian and Eagle Ford assets (see EOG Closes on $5.6B Purchase of Encino Assets in Ohio Utica). The deal, financed through $3.5 billion in new debt and $2.1 billion in cash without issuing stock, added roughly 675,000 net acres, expanding EOG's Utica footprint to nearly 1.1 million acres. This move significantly boosted local production to approximately 275,000 barrels of oil equivalent per day. Following the midyear closing, EOG raised its 2025 production guidance and increased its dividend by 5%, with early results exceeding profit estimates.
US Producers Refine Their Marcellus, Utica Shale Strategies | Energy Intelligence - A string of related M&A deals announced this week has a trio of gas producers in the US Appalachian Basin expanding their core upstream and midstream operations in an effort to control costs while providing better access to key markets.
13 New Shale Well Permits Issued for PA-OH-WV Dec 8 – 14 - Marcellus Drilling News - Volatility is the watchword for new permits in the Marcellus/Utica. Three weeks ago, the combined count between Pennsylvania, Ohio, and West Virginia was a measly 8 new permits (see 8 New Shale Well Permits Issued for PA-OH-WV Nov 24 – 30). Two weeks ago, the number soared to the highest we’ve seen for a single week in a long time, maybe ever, at 60 new permits (see 60 New Shale Well Permits Issued for PA-OH-WV Dec 1 – 7). Last week? For December 8 – 14, the number sank once again, down to 13. PA issued 5 permits, OH issued 7, and WV issued 1 last week.
PA DEP Ready to Issue Permits for EGTS Pipe Project from PA to OH - Marcellus Drilling News - Eastern Gas Transmission and Storage (EGTS), a wholly owned subsidiary of Berkshire Hathaway Energy Company (Warren Buffett’s company), filed a new project with the Federal Energy Regulatory Commission (FERC) in July (see Eastern Gas Files with FERC to Expand Pipe Flows from PA to OH). The project, called the Appalachian Reliability Project (ARP), is designed to move more natural gas from Pennsylvania to Ohio. ARP will leverage existing EGTS pipeline infrastructure while increasing its system capacity through pipeline additions (4 miles of new pipe) and station upgrades. Over the weekend, the Pennsylvania Department of Environmental Protection (DEP) published a notice in the PA Bulletin looking for comments on the department's plan to issue three permits related to the project.
PA Environment Digest Blog: Susquehanna River Basin Commission Approved 31 Shale Gas Well Pad Water Use General Permits In November; 429 In 2025 - The Susquehanna River Basin Commission published notice in the December 20 PA Bulletin the Executive Director gave his approval to or renewed 31 general water use permits in November for individual shale gas well drilling pads in Blair, Bradford, Clearfield, Lycoming, Susquehanna and Tioga counties. So far in 2025, SRBC issued or renewed 429 general water use permits for shale gas development. A separate water withdrawal approval is required by SRBC for actually withdrawing water from a specific water source for use by shale gas drilling operations. Read more here.So far in 2025, SRBC issued 22 water withdrawal requests for shale gas development. Read more here. Here is the list of new general permits renewed or issued in November--
PA Green Groups Appeal DEP Permit for Homer City Gas-Fired Power - Marcellus Drilling News - In April, Knighthead Capital Management, Homer City Redevelopment (HCR), and Kiewit Power Constructors Co. announced a plan to convert the former Homer City Generating Station, previously the largest coal-fired power plant in Pennsylvania (Indiana County, 50 miles east of Pittsburgh) into a more than 3,200-acre natural gas-powered data center campus, designed to meet the growing demand for artificial intelligence (AI) and high-performance computing (see Largest Gas-Fired Power Plant in the U.S. Coming in Western Pa.). The new gas-fired plant attached to the project will be THE LARGEST gas-fired power plant in the country, capable of producing up to 4.5 gigawatts (4,500 MW) of electricity. The Pennsylvania Department of Environmental Protection (DEP) recently approved an air quality plan for the new facility (see PA DEP Signals Air Plan Approval for $10B Homer City Power Plant). PA radicalized green groups have officially appealed the DEP’s permit approval.
MarkWest Wins Court Case Lowering Tax Assessment for WV NGL Pipes - Marcellus Drilling News - Pipelines in West Virginia (like most other states) pay property taxes. It’s a significant revenue generator for counties. There are many pipelines in Wetzel County, including three NGL pipelines owned and operated by MarkWest (aka MPLX) that connect to the Mobley Gas Plant. In 2022, MarkWest filed a tax return for the pipelines showing a 35% reduction in value due to less-than-forecasted pipeline usage, a concept called “economic obsolescence based on inutility.” The County Assessor for Wetzel County challenged MarkWest’s claim.
FERC advances Southeast gas pipeline project -Federal regulators agreed Thursday to amend the certificate for Mountain Valley’s Southgate pipeline — a victory for developers and a blow to opponents who cast doubt on a need for the natural gas project.The Federal Energy Regulatory Commission’s decision approved Mountain Valley’s request to shorten the pipeline’s length from 75 miles down to 31 miles, while increasing the diameter of the project to 30 inches. It had been set to be a mixture of 16-inch and 24-inch diameter pipe.FERC — which in 2020 blessed the project now known as MVP Southgate — said Thursday that Mountain Valley has demonstrated a need for the pipeline. The project would extend the existing Mountain Valley pipeline into North Carolina. “The amendment is a great story of efficiency,” FERC Chair Laura Swett said Thursday during the commission open meeting. “The project is going to provide 175,000 dekatherms a day more capacity, at less than half the original length and with substantially fewer water crossings and fewer environmental impacts, than the original plan.”
Moundsville, WV Gas-Fired Power Plant Project Back from the Dead - Marcellus Drilling News - In August 2014, the Marshall County, WV board of commissioners voted to approve a plan to build a Marcellus Shale-powered electric plant in the county (see Marshall County Votes to Accept Gas-Powered Electric Plant). Moundsville Power, a company owned by developers from Buffalo, NY, sought to build a 549-megawatt plant costing (at that time) $615 million. It never happened due to opposition from the coal industry, which (at that time) had a stranglehold on the state (see Last Stand: Big Coal Tries to Block NatGas Electric Plant in WV). While the coal industry is still highly influential in WV, natural gas is seen as equally important. The long-dead Moundsville project has come roaring back to life under Gov. Patrick Morrisey and his “50 by ’50” power plan (see WV Gov. Morrisey Wants 50 GW of PowerGen in State by 2050).
Va. SCC Unapproves Dominion’s Chesterfield Gas-Fired Plant - Marcellus Drilling News - In June 2023, Dominion Energy announced plans to build four small “peaker” electric generating plants in Chesterfield County near Richmond (see Dominion Plans to Build 1,000-MW Gas Peaker Plant Near Richmond, VA). The Chesterfield Energy Reliability Center (CERC) calls for building four 250-megawatt gas-fired power plants (1,000 MW total) that can jump into action during the coldest and hottest days of the year to help supply enough electricity for 250,000 homes—to keep the lights on because solar and wind are not up to the task. Three weeks ago, the State Corporation Commission (SCC) finally approved the project (see Va. SCC Finally Approves Dominion’s Chesterfield Gas-Fired Plant). And just like that, the SCC has canceled its approval so it can consider an appeal filed on Monday by radical green groups. Yes, elections have consequences.
Gas-Fired Power Plant Planned for Southwest Virginia Data Center- Marcellus Drilling News - Great news about another new gas-fired power plant coming to Virginia—a plant that will use Marcellus/Utica molecules. Red Post Energy Group and Wise Innovation Hub Venture (OASIS) have signed a Letter of Intent to develop power infrastructure for a major technology and data center hub in Wise County, Virginia, in the southwestern corner of the state. Known as the Maverick Project, this phased initiative aims for a total capacity of 600 megawatts, beginning with an initial 100-megawatt phase.
Ontario Natural Gas Storage Slips Below Historic Norms Amid Coldest Winter Start in 25 Years -- Natural gas storage levels in Ontario reached their lowest level for this time of year in more than a decade, pressured by an unusually cold start to the heating season and robust demand. Line chart showing NGI’s Dawn daily natural gas prices from December 2024 through December 2025. Prices rise above $5/MMBtu in January and spike near $7/MMBtu in February 2025, decline steadily to around $2.50/MMBtu by late spring and summer, then rebound sharply in November toward $4.80/MMBtu before easing in December. Source: NGI’s Daily Gas Price Index. At A Glance:
Central Canada demand strong
Ontario gas storage hits a low
Dawn prices relatively strong
Woodside Secures DOE Extension as Louisiana LNG Construction Advances -- The U.S. Department of Energy (DOE) has granted an export permit extension for Woodside Energy Group Ltd.’s Louisiana LNG, pushing its deadline for commencement of operations to the end of the decade. At A Glance:
- Louisiana LNG production deadline extended to 2029
- Peak feed gas demand of more than 3.88 Bcf/d
- DOE granted more than 8 Bcf/d in 2025 authorizations
DOE Gives Woodside LNG (Former Driftwood) Extra 44 Mos. to Build - Marcellus Drilling News - U.S. Secretary of Energy Chris Wright yesterday signed an amendment order granting an additional 44 months for Woodside Energy to commence LNG exports to non-FTA countries from the Woodside Louisiana LNG Project under construction in Calcasieu Parish, LA. The project was formerly called Driftwood. Once fully constructed, the project will be capable of exporting up to 3.88 billion cubic feet per day (Bcf/d) of natural gas as LNG.
Energy Transfer Drops Plans for Lake Charles LNG After Lengthy Battle to Develop Project -- Energy Transfer LP (ET) said late Thursday it would suspend development of the Lake Charles LNG project planned for Louisiana, saying instead it would focus on a “significant backlog” of natural gas pipeline infrastructure that needs to be built. At A Glance:
Company said it would suspend development
Pipeline buildout will be focus
Transwestern expansion being upsized
Energy Transfer scraps development of Lake Charles LNG export project (Reuters) - Energy Transfer said on Thursday it was suspending the development of its Lake Charles liquefied natural gas export facility in Louisiana, the first LNG project to be halted after U.S. President Donald Trump expedited permits for them in January. The suspension comes as the company has been facing rising costs and amid fears of a looming global oversupply as new LNG output comes online. In a statement, Energy Transfer said it will focus on allocating funds to natural gas pipeline projects, which it believes provide superior risk and return profiles. The pipeline and storage company said it remains open to discussions with third parties that may have an interest in developing the LNG project. Energy Transfer executives became nervous about Lake Charles LNG in the final stretch of development because the company still sees itself as a pipeline operator rather than an LNG-focused company, said a person familiar with the project. Offtake agreements for Lake Charles LNG had been structured in a way to protect Energy Transfer from a potential glut in LNG supply, the person added. Energy Transfer did not immediately respond to a request for additional comment. The company had previously said it would only give the facility the financial go-ahead if it sold 80% of the project to equity partners. Lake Charles LNG was projected to have a liquefaction capacity of 16.45 million metric tons per annum (mtpa). The suspension could impact customers including U.S. oil producer Chevron. Energy Transfer said in June it would supply Chevron with an additional 1 mtpa from Lake Charles, bringing the total contracted volumes to Chevron to 3 mtpa. The oil producer did not immediately respond to a request for comment. Contracting has slowed down across all LNG facilities, and contract rates on sale and purchase agreements are much lower than previous rates, squeezing margins for LNG developers, analysts said. "There is quite a bit of capacity out there, and way too many projects. Some more projects will wither away," said Uday Turaga, the founder of energy research and consulting firm ADI Analytics. The Dallas-headquartered company on Thursday also announced an increase in the transportation capacity of its Transwestern pipeline’s planned expansion project to meet additional customer demand. The pipeline expansion project, called Desert Southwest, will now cost about $5.6 billion, excluding allowance for funds used during construction, Energy Transfer said. The project was previously expected to cost about $5.3 billion including a $600 million of allowance for funds used during construction. The project’s main pipeline diameter will be increased from 42 inches (106 cm) to 48 inches, which will grow the project’s capacity to up to 2.3 billion cubic feet per day, Energy Transfer said. The design capacity of the pipeline was previously 1.5 bcf per day. The pipeline is expected to be in service by the fourth quarter of 2029. "There is significant demand growth in the Desert Southwest region, including the potential to retire and/or convert coal-fired power plants to natural gas, which could further benefit the project," the company said, adding the ultimate capacity of the expansion project would be based on market demand.
Energy Transfer Unexpectedly Kills Lake Charles LNG Export Project - Marcellus Drilling News - This is sad and unexpected. Five weeks ago, MDN reported that Energy Transfer was holding off on a final investment decision (FID) for its Lake Charles LNG export project until 80% of the project had been sold to equity partners (see Energy Transfer Taps the Brakes on Lake Charles LNG Export FID). Last week, we reported that ET has now secured enough agreements to move forward with the FID and planned to do so “early next year” (see Energy Transfer Expects FID for Lake Charles LNG Early Next Year). But yesterday, ET announced that it is suspending development of the Lake Charles LNG project to “focus on allocating capital to its significant backlog of natural gas pipeline infrastructure projects that Energy Transfer believes provide superior risk/return profiles.”
Train 1 Commissioning Accelerates at Golden Pass, Setting Up Early 2026 LNG Production - Golden Pass LNG developers have been cleared to begin key testing processes for Train 1 following delivery of a cooldown cargo, pushing the project a critical step closer to first production. At A Glance:
- Golden Pass approved for turbine tests
- Train 1 adds 800 MMc/d in feed gas demand
- Pipeline nominations spike ahead of tests
US natural gas futures dip 3% as mild weather curbs demand (Reuters) - U.S. natural gas futures slid about 3% to a fresh sixweek low on Monday on forecasts for milder weather over the next two weeks than previously expected, near-record output, ample amounts of gas in storage, and recent declines in gas prices around the world. Front-month gas futures for January delivery NGc1 on the New York Mercantile Exchange fell 10.1 cents, or 2.5%, to $4.012 per million British thermal units (mmBtu), putting the contract on track for its lowest close since October 30 for a second day in a row. In the cash market, average prices at the Waha Hub in the Permian shale basin in West Texas remained in negative territory for a fourth day in a row as pipeline constraints trapped gas in the nation's biggest oil-producing basin. It was the 35th time Waha prices traded below zero this year and compares with an average of $1.21 per mmBtu so far in 2025, 77 cents in 2024, and $2.91 over the previous five years (2019-2023). Waha first averaged below zero in 2019. It did so 17 times in 2019, six times in 2020, once in 2023, and a record 49 times in 2024. Financial firm LSEG said average gas output in the Lower 48 states had risen to 109.7 billion cubic feet per day (bcfd) so far in December, up from a monthly record high of 109.6 bcfd in November. On a daily basis, output was on track to drop to a three-week low of 108.9 bcfd, down about 2.4 bcfd since hitting a daily record high of 111.3 bcfd on November 28. LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 145.2 bcfd this week to 131.6 bcfd next week. Those forecasts were higher than LSEG's outlook on Friday.
US natural gas futures dip 3% to six-week low on mild weather (Reuters) - U.S. natural gas futures slid about 3% on Tuesday to a six-week low, on milder weather forecasts for the next two weeks, the shutdown of a liquefaction train at Freeport LNG, and ample amounts of gas in storage. Front-month gas futures for January delivery NGc1 on the New York Mercantile Exchange fell 12.6 cents, or 3.1%, to settle at $3.886 per million British thermal units (mmBtu), their lowest close since October 29. Financial firm LSEG said average gas output in the Lower 48 states eased to 109.5 billion cubic feet per day (bcfd) so far in December, down from a monthly record high of 109.6 bcfd in November. On a daily basis, output was on track to drop to a six-week low of 107.4 bcfd, down about 3.9 bcfd since hitting a daily record high of 111.3 bcfd on November 28. That decline was due in part to some frozen wells in Pennsylvania, Wyoming and West Virginia, according to data from LSEG and analysts' comments. Record output has allowed energy companies to stockpile more gas than usual so far this year, leaving the amount of fuel in storage at about 1% above normal. EIA/GAS Meteorologists forecast weather across the country would remain mostly warmer than normal through December 31, keeping the amount of gas needed to heat homes and businesses lower than usual for this time of year. LSEG projected average gas demand in the Lower 48 states, including exports, would slide from 146.1 bcfd this week to 130.3 bcfd next week. The forecast for this week was higher than LSEG's outlook on Monday, while the forecast for next week was lower. Average gas flows to the eight large U.S. liquefied natural gas (LNG) export plants rose to 18.6 bcfd so far this month, up from a monthly record high of 18.2 bcfd in November. Gas was trading near a 19-month low of around $9 per mmBtu at the Dutch Title Transfer Facility benchmark in Europe and a 20-month low of around $10 at the Japan-Korea Marker in Asia. Global prices have declined in recent weeks with the slow start of the winter heating season and hopes peace talks over Ukraine could result in the lifting of sanctions against Moscow.That could allow Russia, the world's second-biggest gas producer behind the U.S., to export more fuel in the future.
U.S. Natural Gas Futures Rise 4% on Strong LNG Export Flows - Near-record LNG export flows and stronger demand forecasts lifted U.S. natural gas futures, pushing prices out of oversold territory despite ample supply and warmer-than-normal weather outlooks. (Reuters) — U.S. natural gas futures climbed about 4% on Wednesday on near-record gas flows to liquefied natural gas (LNG) export plants and forecasts for more demand next week than previously expected. Front-month gas futures for January delivery on the New York Mercantile Exchange rose 13.8 cents, or 3.6%, to settle at $4.024 per million British thermal units (MMBtu). On Dec. 16, the contract closed at its lowest since October 29. That pushed the front-month out of technically oversold territory for the first time in four days. Average gas output in the Lower 48 states eased to 109.5 billion cubic feet per day (billion cubic feet per day) so far in December, down from a monthly record high of 109.6 billion cubic feet per day in November, LSEG said. Record output has allowed energy companies to stockpile more gas than usual so far this year, leaving the amount of fuel in storage at about 1% above normal. Meteorologists forecast weather across the country would remain mostly warmer than normal through January 1, keeping the amount of gas needed to heat homes and businesses lower than usual for this time of year. LSEG projected average gas demand in the Lower 48 states, including exports, would fall from 145.1 billion cubic feet per day this week to 131.1 billion cubic feet per day next week. The forecast for this week was lower than LSEG's outlook on Tuesday, while the forecast for next week was higher. Average gas flows to the eight large U.S. LNG export plants rose to 18.6 billion cubic feet per day so far this month, up from a monthly record high of 18.2 billion cubic feet per day in November. Elsewhere, Freeport LNG's export plant in Texas was on track to take in more gas on Dec. 17 in a sign that one of its three liquefaction trains has returned to service after shutting down on Dec. 16.
US natural gas futures fall 3% on mild weather forecasts — U.S. natural gas futures slid about 3% on Thursday on forecasts for milder weather and lower demand over the next two weeks than previously expected, near-record output, ample amounts of gas in storage, and relatively low gas prices around the world. Front-month gas futures for January delivery on the New York Mercantile Exchange fell 11.6 cents, or 2.9%, to settle at $3.908 per million British thermal units (mmBtu). That price decline came despite a federal report showing last week's storage withdrawal was much bigger than usual for this time of year as extreme cold boosted heating demand. The U.S. Energy Information Administration (EIA) said energy firms pulled 167 billion cubic feet (bcf) of gas out of storage during the week ended December 12. That was in line with the 169-bcf withdrawal analysts forecast in a Reuters poll and compares with a decline of 134 bcf during the same week last year and an average withdrawal of 96 bcf over the past five years (2020-2024). Financial firm LSEG said average gas output in the Lower 48 states eased to 109.5 billion cubic feet per day (bcfd) so far in December, down from a monthly record high of 109.6 bcfd in November. Record output has allowed energy companies to stockpile more gas than usual so far this year, leaving the amount of fuel in storage at about 1% above normal. Meteorologists forecast weather across the country would remain mostly warmer than normal through January 2, keeping the amount of gas needed to heat homes and businesses lower than usual for this time of year. LSEG projected average gas demand in the Lower 48 states, including exports, would fall from 144.8 bcfd this week to 128.8 bcfd next week. Those forecasts were lower than LSEG's outlook on Wednesday. Average gas flows to the eight large U.S. LNG export plants rose to 18.5 bcfd so far this month, up from a monthly record high of 18.2 bcfd in November.
US natural gas futures climb 2% on near-record LNG export flows — U.S. natural gas futures climbed about 2% on Friday on near-record gas flows to liquefied natural gas (LNG) export plants. That price increase came despite forecasts for milder weather and lower demand over the next two weeks than previously expected and near-record output. Front-month gas futures for January delivery on the New York Mercantile Exchange rose 7.6 cents, or 1.9%, to settle at $3.984 per million British thermal units (mmBtu). For the week, the contract was down about 3% after dropping around 22% last week. Looking forward, gas futures for calendar 2026 fell to a 13-month low of $3.73 per mmBtu. That compares with a futures average of $3.60 so far in 2025, $2.41 in 2024, and $3.52 over the prior five years (2019-2023). Financial firm LSEG said average gas output in the Lower 48 states held at 109.6 billion cubic feet per day (bcfd) so far in December, the same as November's monthly record high. Meteorologists forecast weather across the country would remain mostly warmer than normal through January 3, keeping the amount of gas needed to heat homes and businesses lower than usual for this time of year. LSEG projected average gas demand in the Lower 48 states, including exports, would fall from 144.6 bcfd this week to 127.5 bcfd over the next two weeks. The forecast for next week was lower than LSEG's outlook on Thursday. Average gas flows to the eight large U.S. LNG export plants rose to 18.5 bcfd so far this month, up from a monthly record high of 18.2 bcfd in November. That increase in LNG feedgas came despite what analysts called small gas flow declines at U.S. energy firm Venture Global's 1.6-bcfd Calcasieu and 3.2-bcfd Plaquemines plants in Louisiana in recent days. Officials at Venture Global were not immediately available for comment on the reductions. In other LNG news, U.S. energy firm Energy Transfer said on Thursday it was suspending the development of its Lake Charles LNG export plant in Louisiana to focus on its investments in its pipeline business.
Waha Gas Prices Plunge on El Paso Restrictions --Westbound natural gas flows out of the Permian Basin averaged 2.3 Bcf/d during the week ending December 15, down 0.1 Bcf/d from the prior week and a whopping 0.5 Bcf/d below last year’s level (see chart below). The force majeure at the Roswell, NM compressor station of Kinder Morgan's El Paso Pipeline, which experienced equipment failure on December 3, is still active. However, flow restrictions because of the force majeure on Line 1103 in Arizona were more impactful last week. Kinder Morgan reduced capacity on the line on December 5 to address anomalies on the line in Cochise County then increased flow restriction on December 7 and again on December 10. The restrictions cut around 0.5 Bcf/d of Permian capacity to the West in an already tight market stranding production in the basin and pushing prices deeply negative. El Paso lifted the Force Majeure over the weekend, and capacity was restored as of Saturday’s evening cycle, so prices should normalize this week barring any more issues on the pipeline. Ongoing work on El Paso and frequent operational issues continue to be a thorn in the side of the Basin’s producers and shippers. The price of Waha gas was severely impacted by constrained capacity. Outright Waha cash prices averaged negative $2.12/MMBtu, down $2.38/MMBtu week-on-week according to data from Natural Gas Intelligence (NGI). Cash prices were below zero all week but plunged deeper into negative territory as El Paso flows were restricted further. Waha cash prices dropped to more than negative $6.00/MMBtu over the weekend but should rebound this week given the force majeure has been lifted.
U.S. judge blocks Michigan from shutting down Enbridge's Line 5 oil pipeline | CBC News A U.S. judge on Wednesday blocked Michigan from enforcing a 2020 order to shut down Enbridge's Line 5 oil pipeline running beneath a channel linking two of the Great Lakes, ruling that pipeline safety is a federal responsibility. The decision comes five years after Michigan Governor Gretchen Whitmer revoked an easement allowing Canadian company Enbridge to operate a 6.4 kilometre stretch of aging pipeline underneath the Straits of Mackinac, which connect Lake Michigan and Lake Huron, citing risks to the environment in the event of a spill. Enbridge has been fighting the Michigan decision in court. The 72-year-old pipeline — which ships 540,000 barrels per day of crude and refined products from Superior, Wis., to Sarnia, Ont. — has continued to operate throughout the dispute. In his decision, U.S. District Judge Robert Jonker ruled that pipeline safety and protection of the Straits of Mackinac are the responsibility of the United States, and Michigan lacks the authority to interfere. Enbridge faces other ongoing challenges related to Line 5. The company has proposed building a tunnel to house the aging pipeline, but faces opposition from environmentalists and Native American tribes. The U.S. Army Corps of Engineers, a federal permitting agency, granted national energy emergency status to the Line 5 tunnel project in April, fast-tracking a key permitting process.
Eye of the Eiger – Plan to Expand Eiger Express Gas Pipeline Shows Confidence in Growth Scenario -If you have any lingering doubt that Permian natural gas production and Gulf Coast LNG exports will continue rising, consider this: Between late August and late November, a WhiteWater Midstream-led team received enough incremental shipper interest in its planned 2.5-Bcf/d Eiger Express Pipeline that it upsized the project’s capacity to a whopping 3.7 Bcf/d. In today’s RBN blog, we’ll discuss the expansion plan — which includes a rare long-haul run of 48-inch-diameter pipe — and the extraordinary gas supply and demand growth that’s driving it. It was only three months ago that we looked at the then newly announced plan for Eiger Express (dashed dark-blue line in Figure 1 below), which at the time was expected to add 2.5 Bcf/d of takeaway capacity from the Waha Hub and Midland Basin to the Katy, TX, area by mid-2028. That plan still stands, but the team developing the greenfield pipeline alongside the existing 490-mile, 42-inch, 2.5-Bcf/d Matterhorn Express Pipeline (dark-green line) said on November 24 that, due to a new round of long-term commitments from shippers, they plan to swap out Eiger Express’s previously planned 42-inch pipe for 48-inch pipe, install more compression, and add 1.2 Bcf/d to the facility’s capacity between mid-2028 and mid-2029.The now 3.7-Bcf/d Eiger Express project is 70% owned by the joint venture (JV) that fully owns Matterhorn Express — aka the Matterhorn JV, which consists of WhiteWater (with a 65% stake in the JV), ONEOK (15%), MPLX (10%) and Enbridge (10%) — with the other 30% of Eiger Express held directly by ONEOK (15%) and MPLX (15%). Do the math and WhiteWater holds an overall 45.5% interest in the new project, with ONEOK owning 25.5%, MPLX owning 22% and Enbridge owning 7%. By the way, WhiteWater’s stake in the Matterhorn JV is held by FIC Partners Management and I Squared Capital.Matterhorn Express and Eiger Express are, of course, only the latest in a long list of gas pipeline projects in which WhiteWater has played a leading role, most of them via the so-called Whistler Pipeline LLC (WPC) JV, which is 50.6% owned by WhiteWater, with MPLX holding a 30.4% stake and Enbridge owning the remaining 19%. (I Squared Capital owns WhiteWater’s stake in WPC; see Climb Ev’ry Mountain for details.) As we discussed recently in Dare You to Move, WhiteWater’s success in advancing an outsized share of Permian and Gulf Coast projects is tied to its savviness in pulling together big deals or, more specifically, its uncanny ability to anticipate the next “hot” corridor; its penchant for offering innovative, highly attractive tariffs; and its ability to achieve a critical mass of shipper commitments and make a final investment decision (FID) before its more conservative rivals. Eiger Express is a case in point. WhiteWater this past spring and summer signed up an impressive number of producers, marketers and other shippers for Eiger, thereby enabling the midstream company and its partners to pull the trigger on the initial 2.5-Bcf/d project. Taking FID spurred a second round of interest this fall, not only from a couple of Eiger’s anchor shippers (who increased how much firm capacity they want on the pipe) but also from a handful of new shippers. Our understanding is that about 15 shippers have now made long-term commitments for a piece of the new pipe’s throughput, and that collectively they have signed up for more than three-quarters of its 3.7 Bcf/d of capacity.Explaining the need for an expanded Eiger Express Pipeline — and the other pipelines under development in Texas and Louisiana, for that matter — is simple: rising gas supply from the Permian (and other production areas in Texas and Louisiana) and rising Gulf Coast gas demand from new and expanding LNG export terminals and new gas-fired power plants, many of the latter tied to planned data centers. According to RBN’s monthly Arrow Model report, Permian gas production is projected to increase from an average of 22.2 Bcf/d in 2025 to 25.2 Bcf/d in 2027 and 34.2 Bcf/d in 2035, a compound annual growth rate (CAGR) of 4.4%. Given that gas takeaway capacity out of the Permian is already constrained (dashed purple oval in left graph in Figure 1 below) — for evidence, note the mostly negative gas prices at Waha over the past several months (dashed purple oval in right graph) — this indicates an ongoing need for new or expanded pipelines from West Texas to the Gulf Coast.We also forecast that production in other parts of Texas (mostly the Eagle Ford) will rise from 15.4 Bcf/d this year to 17.8 Bcf/d in 2027 and 21.9 Bcf/d 10 years from now (a CAGR of 3.6%), and that production in the Haynesville will rise from 9.8 Bcf/d this year to 11.1 Bcf/d in 2027 and 13.5 Bcf/d in 2035 (a CAGR of 3.3%).As for the demand side of the equation, incremental gas demand from LNG export terminals is by far the leading factor. RBN’s Arrow Model, which closely monitors the planned addition of new LNG export capacity, projects that feedgas demand from LNG terminals in Texas will soar from “only” 4.5 Bcf/d in 2025 to 8.8 Bcf/d in 2027 and a staggering 16.4 Bcf/d 10 years from now (a 14% CAGR!). LNG feedgas demand in Louisiana is projected to rise more gradually, from an already hefty 10.5 Bcf/d this year to 11.7 Bcf/d in 2027 and 16.2 Bcf/d in 2035 (a CAGR of 4.5%).
Tequila Sunrise – Basin and Sunrise Pipelines Remain a Key Part of Plains’ Permian Operations - The largest artery moving crude from the prolific Permian Basin to Cushing, OK, is Plains All American’s Basin Pipeline, one of the first long-haul pipelines out of Midland, TX. Basin gets help along the way from the complementary Sunrise Pipeline, and together they are responsible for moving large volumes from the Permian to Wichita Falls, TX. From there, the Basin pipe moves barrels all the way to Cushing, delivery point for the West Texas Intermediate (WTI) futures contract and home to massive commercial storage. In today’s RBN blog, we’ll dig into why Basin and Sunrise are so important to the Permian, Plains and Cushing. RBN Energy’s South Texas Energy Infrastructure Map brings together all the pieces of the critical and complex puzzle of the greater Corpus Christi region. Spanning from Point Comfort, TX to Corpus Christ, TX and south of the Agua Dulce natural gas hub, the map details the processing, transportation and export facilities in RBN Energy’s classic clear, concise and easy to comprehend style.This is our most recent in a series of blogs highlighting Permian outbound long-haul crude oil pipelines. We’ve highlighted pipelines to Houston, Corpus Christi (Cactus I and II; Cactus III, formerly EPIC Crude; and Gray Oak) and Nederland (West Texas Gulf and Permian Express), including our recently published Drill Down Report. In today’s blog, the first in a mini-series on pipes going to Cushing, we’ll discuss the Basin and Sunrise pipelines. In an upcoming blog, we’ll dive into Centurion, which also delivers to Cushing.The small town of Cushing occupies a central place in the U.S. crude oil market thanks to its hundreds of storage tanks and numerous pipeline connections, as shown in Figure 1 below. Cushing — the “Pipeline Crossroads of the World” — is never far from our hearts and minds here at RBN. A popular topic in the RBN blogosphere (see Give and Take, among others), Cushing is connected to several inbound pipelines from Western Canada, the Bakken, the Niobrara, the Permian and SCOOP/STACK, and is also linked to outbound pipes that deliver to inland refineries, Gulf Coast refineries and export terminals. The Oklahoma hub is also the delivery point for the CME/NYMEX futures contract for WTI — one of the most widely and actively traded physical commodity futures contracts in the world and the benchmark underpinning most physical U.S. crude oil purchase and sales contracts. Cushing is home to the nation’s largest commercial crude tank farm, with more than 350 aboveground tanks all sited within 10 miles (shaded areas in Figure 1 inset), according to the Energy Information Administration (EIA). The EIA provides two numbers for storage capacity at Cushing: net available shell capacity and working storage capacity. The two terms refer to how much of an oil storage tank is theoretically available to hold oil versus how much of that capacity is actually usable. The EIA put shell capacity at 94 MMbbl and working capacity at 78.4 MMbbl as of March 2024, the most recently available data. Cushing is often used as a sort of way station where crude can be received and sent out when needed to refineries and export terminals. The two pipelines are complementary but serve distinctly different functions. Plains operates the 519-mile Basin Pipeline (aqua line in Figure 2 below) from Colorado City, TX, to Cushing, providing multiple delivery options, including refinery access, along the way. The pipeline carries 450 Mb/d from Colorado City to Wichita Falls, then on to Cushing. Similarly, the Sunrise pipeline system (magenta line) runs 254 miles from Midland through Colorado City to Wichita Falls and can take barrels from farther west in the Delaware Basin at Conan and Wink, functioning primarily as a gathering and intermediate transport system. Sunrise initially connected Midland to Colorado City before Plains extended the system in 2018, adding a 500-Mb/d segment from Colorado City to Wichita Falls. The two pipelines overlap between Colorado City and Wichita Falls, running parallel routes and delivering to similar areas. In this 180-mile stretch, shippers can move crude on either Basin or Sunrise; however, the systems serve different purposes. Basin continues northeast to Cushing as its primary destination, while Sunrise ends at Wichita Falls. From there, shippers on Sunrise can either go northeast on Basin to Cushing or travel southeast on Energy Transfer's Permian Express (pink line) to Nederland. In addition, at Wichita Falls, the panhandle refinery market becomes accessible via westbound connections, where crude can travel on the Wichita Falls Crude Pipeline (green line) on its way to two major refineries — Valero's McKee and Phillips 66's Borger facilities (orange and red refinery icons, respectively, in upper-left). Basin also has a connection to Valero’s Ardmore refinery (orange refinery icon in center-right) via the Ardmore Pipeline (blue line).The Basin and Sunrise pipelines complement the rest of Plains’ Permian portfolio, which includes numerous pipelines and is rapidly growing. Plains owns 40% of the 440-Mb/d BridgeTex Pipeline (see Last Man Standing), which moves crude from Colorado City to East Houston, and it has an interest in Wink to Webster Pipeline LLC, the joint venture (JV) owner of the 650-mile, 1.5-MMb/d Wink to Webster pipeline that we detailed in My Way. Plains also owns and operates the 390-Mb/d Cactus I (the original Cactus Pipeline), a 310-mile line from McCamey to Gardendale, as well as 70% of Cactus II, a 585-Mb/d, 575-mile pipe from Orla to Corpus Christi that has been expanded to 670 Mb/d. (Enbridge owns the other 30%.)
GAO calls for shorter oil and gas royalty adjustment periods - A government watchdog recommends that Congress shorten the number of years oil and gas companies have to adjust their federal royalty payments. The Government Accountability Office also recommended that an Interior Department agency make internal alterations to how it tracks royalty agreements with companies. The report, which was published this week, found that giving companies six years to make adjustments to their royalty payments can make work difficult for regulators. Oil and gas royalties are a percentage of the total production value that the government charges companies that extract oil and gas from public territories. Royalties generated more than $14 billion for the federal government in fiscal 2024, according to GAO.
Iraqi Crude Can’t Replace Venezuelan Oil in the U.S. Market - The economics of shipping additional volumes of heavy crude from Iraq to compensate for a potential loss of Venezuela’s supply are just not there at present, Shafaq News reported on Friday, quoting Iraqi economist Nabil Al-Marsoumi. Concerns in the heavy crude market are that the U.S. blockade of tankers carrying Venezuelan oil and heightened tensions in the Caribbean would reduce supply of the extra heavy crude. In theory, the sour and heavy grades from the top producers in the Middle East could be substitutes for Venezuela’s crude. But apparently, these would not come from Iraq. “It’s not financially viable for Iraq to replace Venezuela in the US market,” Shafaq News quoted Al-Marsoumi as posting on Facebook post. The Iraqi grade Basrah Heavy currently trades at about $4 per barrel below Basrah Medium. Transporting Bashrah Heavy to the United States would add $3.50 per barrel in shipping and insurance costs, according to the economist. “The margin just doesn’t justify it,” Al-Marsoumi said. Moreover, Iraq’s oil production is limited by the OPEC+ agreement under which Baghdad is also compensating for previous overproduction by not raising output as much as it is entitled to. Venezuela, for its part, may be forced to start shutting in oil production as it runs out of storage space amid the U.S. tanker blockade, Bloomberg reported earlier this week, citing unnamed sources. Further disruption for Venezuela’s oil industry comes from the impact of the tanker blockade on its supply of Russian naphtha, which state oil firm PDVSA uses to dilute its heavy crude. At least one tanker with 32,000 metric tons of Russian naphtha was traveling to Venezuela last week, but it made a U-turn at the end of the week and is now en route to Europe with the cargo still on board, according to data from LSEG that Reuters cited earlier this week.
Trump administration backs continued Dakota Access pipeline operations --The Trump administration will support the continued operation of the Dakota Access pipeline, it said Friday in a long-awaited but not surprising move.The U.S. Army Corps of Engineers issued a final environmental impact report Friday recommending that oil keep flowing through the controversial pipeline.The Dakota Access pipeline carries oil from North Dakota to Illinois. It has been particularly controversial among environmental activists and was the subject of massive protests in 2016. The Trump administrationapproved the pipeline in 2017. However, a court ruled in 2020 that the federal government needed to take a second look at its environmental impacts.Under that court order, the Biden administration issued a draft report in 2023 saying that it could revoke the pipeline’s permit, keep it in place or add stipulations. It did not say at the time which way it was leaning. It did not issue a final report, with the decision ultimately landing in the hands of the second Trump administration. In the final report issued Friday, the administration said it would allow the pipeline to continue running — though it would add some additional stipulations.In particular, Dakota Access will have to develop a plan for alternative drinking water supplies for nearby communities in the case of an oil spill. It will also have to install better leak detection systems as new technology becomes available and conduct water sampling twice per year.Friday’s report is the penultimate step in the pipeline process, and the Trump administration could issue a final decision on the pipeline in 30 or more days. It is expected to maintain its current position on the pipeline in the ultimate decision.The pipeline’s critics have expressed concerns about potential impacts of an oil spill on nearby drinking water, especially for the Standing Rock Sioux tribe.
Glory Days – Which Bakken Operators Have the Biggest Inventories of Top-Tier Drilling Sites? | RBN Energy -- Three-quarters of the Bakken's top-tier well sites may have already been drilled and the basin’s remaining inventory may be less than stellar, but a new AI-based analysis suggests that the quality of the locations held by each of the shale play’s top 10 producers varies widely. For a few, there are still plenty of spots that make economic sense to drill and complete, but activity may slow to a crawl for others unless crude oil prices rebound — and in a big way. In today’s RBN blog, we continue our look at Novi Labs’ intense examination of the U.S.’s second-largest onshore production area. This is the second blog in this miniseries. In Part 1, we said that while Bakken crude oil production is humming along at a steady 1.2 MMb/d, about 75% of the shale play’s top-quartile locations have already been drilled and only 6,100 well sites — about six years of inventory at the current drilling pace — could generate a good return at the range of commodity prices we’ve seen the past couple of years. We also explained Novi’s data-based, machine-learning-enhanced approach to analyzing the many layers (aka benches) in the Bakken (and other shale plays) to determine not only how much crude remains underground but how much is likely to be produced under various price scenarios.Put simply, machine learning crunches a wide range of geologic, operational and spatial data collected from thousands of drilled wells to recognize patterns and identify the primary drivers of well performance. It then enables operators to assess how changing variables (like drilling in a higher-pressure area, tightening well spacing or increasing proppant intensity) would affect production outcomes in wells yet to be drilled. And it gives operators guidance on how best to lay out, space and sequence the development of the benches. More important for our purposes, this approach also reveals the relative quality of the rock in various parts of a shale basin and how much of the remaining resource is likely to be developed at various crude oil price points. Regarding rock quality in the Bakken, the basin’s existing and potential wells are separated into four quartiles or tiers, with Tier 1 wells being the juiciest and (generally speaking) the most economic and Tier 4 wells having the lowest quality and being economic only if oil prices are very high. Finally, we noted there are two common ways to assess whether it makes sense to drill and complete a well: using a straight two-year breakeven or using a more conservative NPV25 breakeven, with NPV referring to net present value. (See Part 1 for details.) Last time, we took a big-picture look at the Bakken’s remaining inventory of drilling locations. In today’s blog, we shift to a company-by-company analysis that reveals significant differences in the quality of their yet-to-be-drilled sites.
Freezing Cold In Canada, Propane Priced To Stay Home! Exports to U.S. Curtailed -A severe cold spell across Western Canada hit an already tight propane balance, accelerating inventory draws and pushing Edmonton prices sharply higher as the market moved to secure local supply. As a result, the long-standing Edmonton, AB discount to Conway, Kansas collapsed from typical double-digit levels to just a few cents per gallon. Since 2012, Edmonton has averaged about 18 c/gal under Conway (left graph below), wide enough to incent propane movements from Canada to U.S. markets. As shown in the right graph, this year, that average has narrowed to 15 c/gal. Last week the discount briefly shrank to just 1.5 c/gal and ended the week at 4 c/gal under Conway (blue arrow), an unmistakable signal that the market is adjusting to keep Canadian propane in Canada.Canadian propane markets were particularly vulnerable this year because inventories entered the heating season already depleted and never rebuilt enough of a cushion. Stocks in Western Canada were near the low end of the five-year range, while Eastern Canadian inventories fell below the bottom of that range, leaving little margin for error (see graphs below). A severe cold snap in January–February 2025 drew inventories sharply lower across both regions, and although propane production has been higher in 2025 than in 2024, increased exports overseas and stronger in-province demand in Alberta limited inventory recovery, amplifying the market’s sensitivity to weather-driven demand shocks.
Weighed Down by Warm Weather and LNG Supplies, TTF, JKM Sink Further - A steady stream of LNG and pipeline supplies in Europe and Asia continues to keep a lid on prices in both regions, which are at their lowest levels since early last year. Table showing U.S. Gulf Coast LNG netback prices on a 12-month strip as of December 15, 2025, comparing JKM, NBP and TTF futures, estimated shipping costs, resulting Gulf Coast netbacks, changes, Henry Hub futures and LNG margins from January through December 2026. At A Glance:
JKM, TTF trading under $10
Spot buying accelerates in Asia
LNG import cargo
European Gas Prices Find Footing as Winter Outlook Moderates - A look at the global natural gas and LNG markets by the numbers. North America LNG export flow tracker showing daily U.S. LNG deliveries from Dec. 8–17, 2025, averaging about 18.3–18.6 million Dth, with facility-level volumes and utilization for Corpus Christi, Freeport, Sabine Pass, Calcasieu Pass, Cameron, Plaquemines, Elba Island, Cove Point and Golden Pass, plus a U.S. map highlighting LNG export terminal locations.
- $8.90/MMBtu: The prompt Title Transfer Facility (TTF) could be reaching a floor as mild weather and abundant LNG supplies mix with Europe’s energy security requirements. Analysts with trading firm Mind Energy wrote in a market note that after weeks of sliding, Europe’s gas market has appeared to reach a structural bottom of $8.90. The January TTF contract rose slightly Wednesday to $9.38 on forecasts for average winter temperatures.
- 10.74 Mt: Despite falling international prices and cooling demand, U.S. LNG exports could reach an all-time monthly high by the end of December, according to Kpler predictive data. U.S. exporters have shipped or are estimated to ship 10.75 Mt, an increase of 0.14 Mt over the monthly record set in November. The majority of U.S. exports are expected to head to Europe, where imports are estimated to fall 0.69 Mt month/month as arbitrage continues to favor Asia.
- 18.54 Bcf/d: After pipeline maintenance and recovery of LNG output on the Gulf Coast, U.S. feed gas demand has returned to near all-time highs. Freeport LNG briefly tripped Tuesday morning but has since recovered, contributing to an almost 0.7 Bcf/d boost in feed gas nominations. Scheduled flows to U.S. terminals were 18.54 Bcf/d Wednesday, according to NGI calculations of Wood Mackenzie pipeline data.
- 6.3 Mt/y: Italian utility Edison SpA has charted a 174,000 cubic meter LNG vessel as a part of its strategy to build an export portfolio backed by U.S. supply. Edison disclosed a long-term charter with Norwegian firm Knutsen OAS Shipping AS starting in 2028. By the time the charter commences, Edison will have control of 6.3 million tons/year (Mt/y) in export volumes, including 1 Mt/y from Calcasieu Pass and 0.7 Mt/y from Shell plc’s trading arm.
Europe Softens, Doesn’t Eliminate, Crazy Methane Import Standard - Marcellus Drilling News - The European Union is simplifying compliance with its methane emissions law for oil and gas imports, a decision expected to aid U.S. exporters following pressure from the Trump administration. Recognizing that the commingled nature of U.S. liquefied natural gas (LNG) makes tracing difficult, the European Commission proposed two streamlined reporting options: utilizing third-party verification certificates or a digital “trace and claim” system. While the core regulation remains intact with stricter standards scheduled for 2027, these adjustments aim to prevent supply disruptions by offering more flexible monitoring solutions for the fragmented U.S. energy industry. To which we say, tell Europe to bugger off.
LNG supply crunch as carrier orders outstrip shipping capacity --The global LNG market is facing a supply crunch as planned liquefaction capacity is outpacing the number of new carriers set to enter service by 2030, Argus Media reported on December 18. A surge in vessel retirements and a lagging newbuild orderbook are raising concerns that LNG shipping infrastructure may fall short of what is needed to transport the fuel to key demand centres, particularly in Asia. According to data from the International Maritime Organisation, 234 newbuild LNG carriers are scheduled for delivery between 2026 and 2030, with 2026 on track to be the busiest year for deliveries on record. However, this number is insufficient to handle the 229mn tonnes per year (t/yr) of new LNG export capacity already sanctioned globally, based on projects that have reached final investment decision (FID). 'Applying simple shipping ratios, the gap is clear,' Jerry Kalogiratos, chief executive of Capital Clean Energy Carriers, at the World LNG Summit in Istanbul said as cited by Argus Media. “There definitely looks like there is going to be a shortage.” Transporting 1mn t/yr of LNG to Europe typically requires 1.5 vessels, while delivering the same volume to Asia requires three, due to longer voyage distances and turnaround times. On this basis, the 234 newbuilds could support just 158mn t/yr of supply if routed entirely to Europe — or just 78mn t/yr to Asia. The latter is the more likely scenario, according to experts, as demand growth in Southeast Asia accelerates. The shortfall could deepen if more liquefaction projects reach FID, with a further 80mn t/yr of production capacity sanctioned in 2025 alone, which are not covered by potential shipping capacity. At the same time, a wave of scrapping is thinning out the older end of the fleet. So far in 2025, 14 steam turbine LNG carriers have been sold for demolition — nearly triple the annual average between 2020 and 2024. These ageing vessels are increasingly deemed “obsolete” due to high boil-off rates and limited flexibility in today’s trading environment. Data from ship-tracking firm Kpler shows 29 LNG carriers aged 25 years or older remain in operation, including the 137,000m³ Puteri Nilam and Al Jasra, both recently idled in the Strait of Malacca and Brunei Bay. The oldest, LNG Maleo, was built in 1989 and is operated by Indonesia’s Pertamina. Another 47 vessels built between 2000 and 2005 are also likely candidates for retirement by the end of the decade. The average age of LNG vessels scrapped in 2025 was 26, according to Flex LNG.
Natural Gas Liberalization ‘Reshaping Energy Landscape’ for Major LNG Buyer Brazil -- Brazil, Latin America’s biggest LNG purchaser, is undergoing structural market change as its natural gas continues to open to private players, according to a report from Wood Mackenzie. Table titled Latin America DES Prices showing LNG delivered ex-ship prices by country and terminal for January through March 2026, with monthly price levels and changes, including Argentina Escobar, Brazil Pecem, Chile Quintero, Colombia, Mexico East Altamira, Mexico West Manzanillo, and Panama Costa Norte, as of December 15, 2025. At A Glance:
Free market volumes climb steadily
Industrial buyers shift suppliers rapidly
Import capacity expansion supports demand
LNG Supply Expands Faster Than China’s Demand Growth --China’s LNG demand is disappointing in 2025 for a second year in a row, just as new U.S. export projects ramp up and Qatar is nearing start-up of the first new facilities in its huge capacity expansion.The wave of new LNG supply that will come online by the end of the decade, mostly from the top exporters, the United States and Qatar, has prompted many analysts to expect an oversupplied LNG market by 2030 that would weigh on prices. Lower prices could incentivize additional demand from price-sensitive buyers in south and Southeast Asia, but projects for nuclear capacity expansion in the world’s top LNG importers, China and Japan, could reduce demand for imported gas in the long term.China could even launch the world’s first small modular reactor (SMR) as early as 2026.If further tests and construction prove successful, a buyer’s market would give LNG importers new leverage in contract negotiations for long-term supply into the 2030s and 2040s.“The question isn’t which technology prevails. The question is how Asian utilities reprice long-term contracts when two clocks—LNG expansion and nuclear validation—start running in parallel, each generating data that forces the other to justify its risk premium,” geopolitical risk analyst Güney Y?ld?z writes in Forbes.We are years away from SMRs replacing any gas demand in China. But Japan is working to restart more of its nuclear reactors that were shut down for safety checks after the Fukushima disaster in 2011—potentially reducing demand for LNG in the resource-poor G7 nation. Japan’s Prime Minister, Sanae Takaichi, favors accelerating the restart of nuclear reactors as a way to reduce the economy’s dependence on energy imports.Before Fukushima, nuclear energy accounted for about 30% of Japan’s electricity mix. The disaster prompted the closure of all reactors for safety checks. Since 2015, Japan has restarted 14 reactors out of 33, while 11 others are currently in the process of restart approval, including two reactors at the Kashiwazaki-Kariwanuclear power plant, the world’s largest in terms of nameplate capacity.In the short term, analysts expect well-supplied and even oversupplied LNG markets amid lower Chinese demand while new supply comes online.The U.S. is set to export 14.9 billion cubic feet per day of LNG this year, up by 25% from 2024, the Energy Information Administration (EIA) said in its latest Short-Term Energy Outlook (STEO) last week. With new projects ramping up, the EIA expects U.S. LNG exports to jump to an average of 16.3 billion cubic feet per day in 2026.At the same time, China’s LNG imports have been fallingover the past year as domestic production and pipeline imports increase. Despite warnings of a near-term global LNG glut, top exporters in the Middle East, including Qatar and the United Arab Emirates (UAE), see strong demand going forward and flag insufficient investment in supply in the medium to long term.The UAE is growing its LNG exports to meet surging global demand that will outpace investment in supply, Energy Minister Suhail al Mazrouei told Reuters last week.“I agree with his excellency, Minister of Qatar, that the demand is going to be much, much more than the projects that we are seeing,” the UAE official added.
Total domestic and commercial gas consumption exceeded 3.7 billion cubic meters in a week - Iran Energy Press -- Natural gas consumption in the household, commercial, and small industrial sectors increased to about 533 million cubic meters per day in the third week of December, and the highest consumption in this sector was recorded on December 15, with more than 546 million cubic meters. According to Energy Press, a review of the National Iranian Gas Company’s statistics on the domestic, commercial and small industries sector shows that demand in this sector remained high in the third half of December and the wider use of heating appliances. On Saturday, December 15, the consumption of the domestic, commercial and small industries sector reached 546.05 million cubic meters, and on Sunday, December 16, it was recorded with a relative decrease, reaching 540.03 million cubic meters. Consumption in this sector reached 530.05 million cubic meters on Monday, December 17, and remained almost constant at 529.40 million cubic meters on Tuesday, December 18. On Wednesday, December 19, the gas consumption of the domestic, commercial and small industries sector increased slightly by recording 533.95 million cubic meters, and on Thursday, December 20, 531.51 million cubic meters was reported. At the end of the week, Friday, December 21, the consumption in this sector reached 517.27 million cubic meters with a relative decrease.
Oil spill near Colombo Port brought under control within 8 hours - NewswireAn oil spill reported near the Colombo Port in the early hours of December 14 has been successfully brought under control, authorities said. The spill occurred near the crude oil unloading buoy belonging to the Ceylon Petroleum Corporation (CPC) during unloading operations from the vessel MT ASP Avana. Officials said the incident was caused by a defect in a pipeline connected to the buoy. The spill was reported at around 3.30 a.m., following which officials from the Marine Environment Protection Authority (MEPA) carried out an on-site inspection. Cleanup operations were immediately launched with the participation of the Sri Lanka Navy, Sri Lanka Coast Guard, CPC, Lanka Oil Tank Terminals Limited (CPSTL), and private sector support. Oil recovery operations are being carried out using the Sri Lanka Coast Guard vessel “Samaraksha”. Authorities said a significant quantity of the spilled oil has already been recovered and transported ashore using vessels equipped with oil recovery facilities. Efforts to collect the remaining minor quantities of oil are continuing with assistance from private sector vessels. MEPA said the oil spill was contained within approximately eight hours of the incident and that there has been no impact on the marine environment, fish stocks, other marine life, or coastal and fishing communities. The Sri Lanka Air Force has also been deployed to assist with aerial surveillance to monitor the spread and movement of the oil. Observations indicate that, based on current sea conditions and wind direction, the oil is drifting away from Sri Lanka’s coastline. MEPA said it will continue monitoring the situation and will issue further updates if there are any changes.
Oil Market Faces Short-Term Glut But Long-Term Supply Deficit Looms - Rising oil supply amid sluggish demand growth has led forecasters and analysts to predict a significant market surplus heading into 2026. All major experts and investment banks expect inventories to continue accumulating in early 2026, traditionally the weakest period for oil demand each year. While estimates of oversupply vary, 2026 is likely to be the final year the market works through a glut, according to analysts including Goldman Sachs. Despite geopolitical uncertainties, the U.S. Energy Information Administration (EIA) and Wall Street banks remain bearish on oil for the next year, projecting average prices below $60 per barrel in 2026. However, the oil futures curve remains relatively flat, without flipping into contango until October 2026. This suggests market participants are not pricing in a prolonged structural oversupply, noted Ole Hansen, Head of Commodity Strategy at Saxo Bank. “In other words, a soft patch is likely, but not a repeat of the 2020–21 imbalance,” Hansen said. Beyond the anticipated short-term glut, a more critical theme is emerging: a potential structural deficit after 2027, according to Saxo Bank. This perspective of a supply crunch later this decade and into the early 2030s has gained traction recently. Concerns about long-term deficits rose after the International Energy Agency (IEA), historically an advocate for no new oil and gas investment, revised its stance. In September, the IEA stated that new oil and gas resources are necessary just to maintain current output due to accelerating declines at existing fields—a major shift from its 2021 position. Last month, the IEA also abandoned its forecast of peak oil demand by 2030, now projecting demand could reach 113 million barrels per day (bpd) by 2050 amid global energy growth. Increasing energy consumption, including in developed economies driven by AI technologies and rising data center power demand, will require contributions from all energy sources. Meanwhile, upstream investment has declined in recent years, setting the stage for a supply shortfall in the near future. OPEC, led by Saudi Arabia, has repeatedly warned that the oil industry must ramp up exploration and investment in new supply or risk shortages. Saudi Aramco CEO Amin Nasser said in October at the 2025 Energy Intelligence Forum that the energy transition faces a “reality check” and current trends indicate an “energy addition” rather than a transition, requiring all efforts on supply. “We also see resilient demand, and the pressing need for long-term investments in supply is now widely accepted,” Nasser said. The anticipated 2026 glut will likely pressure oil prices and delay investment in new supply, especially in U.S. shale if prices remain below $60 per barrel. “The market’s real vulnerability emerges if non-OPEC+ production slows, particularly in the Americas,” Hansen noted. U.S. shale production grew by roughly 360,000 bpd over the past year, a pace unlikely to continue. The EIA expects U.S. production to flatten in 2026, and Hansen warns it could decline if WTI remains under $60 for another year. In summary, short-term fundamentals suggest oversupply, but the resulting lower prices could pave the way for a structural supply deficit in the medium to long term.
IEA: Global oil surplus masks regional tightness | Oil & Gas Journal -The global oil balance continues to point to a substantial supply overhang, with rising observed stocks that would normally signal sharper declines in oil prices. Yet benchmark crude prices have fallen only modestly in recent months, while refined product cracks surged to 3-year highs in November. This apparent disconnect reflects increasingly divergent dynamics across crude oil, NGLs, and refined products, as well as across regions, according to the International Energy Agency (IEA). It is being driven by a combination of sanctioned supply, longer trade routes, and a tight refining system. While crude markets continue to anchor overall oil pricing, developments in products and NGLs impact their differentials to crude, IEA said. Until September, NGLs accounted for most of the surplus in the global oil balance. Since then, crude oil has taken the lead, with observed stock changes broadly matching the implied surplus. However, much of the incremental crude supply has yet to reach onshore storage, IEA noted. Instead, according to IEA, excess volumes have accumulated in oil on water and in China. There have been no meaningful stock builds in the Atlantic Basin crude pricing hubs that underpin WTI and Dated Brent. As a result, crude futures have remained in backwardation despite the growing surplus. However, as the overhang shows up in onshore stocks, this would normally weigh on prices and market structure. Sanctioned exporters—primarily Iran, Russia, and Venezuela—account for more than one-third of the increase in crude oil on water since August. The remainder reflects rising Middle Eastern output and Atlantic Basin barrels increasingly flowing to markets east of Suez. Sanctioned oil on water began rising as early as February, following tighter US measures on Russian crude at the end of 2024 and early 2025. The relentless strengthening of US and EU sanctions on Iran, Russia, and Venezuela, combined with a limited number of buyers, resulted in a significant build-up of those volumes afloat, IEA said. At the same time, rising exports from the Americas have been redirected toward Asia. “More tankers on long voyages raised oil on water by almost 65 million bbl from end-August,” IEA said. Excluding Russia, Atlantic Basin supply has outpaced regional refinery demand, flipping the region into a marginal surplus. This has pulled North Sea Dated prices below Dubai M1 “If this overhang persists into first and second-quarter 2026, it could hold the price arbitrage to the East open and delay a stock build in the Atlantic Basin pricing hubs for WTI and Dated Brent,” IEA noted. China began building crude stocks in April following the enactment of its new energy law on Jan. 1, 2025, which formally requires both state-owned and private companies to hold strategic reserves. Although stock builds paused in September and October, they resumed in November. As IEA noted, this new framework for managing strategic reserves is unlikely to result in a smooth, linear build. Instead, stock changes may remain volatile as new tank farms gradually fill to operational levels. These dynamics further complicate the relationship between the global balance and observable pricing signals. In contrast to crude, refined product markets have experienced genuine tightness. Swings in the balance for products and biofuels reflect seasonal demand changes and the impact of planned and unplanned refinery outages, IEA said. Seasonal demand peaks in mid-summer 2025 pushed product balances into deficit, followed by brief builds ahead of refinery turnarounds in September and October when stocks drew. Looking into 2026, IEA expects that limited spare refining capacity outside China will restrict the ability to rebuild product stocks. In addition, new EU sanctions on imports of products refined from Russian crude are set to disrupt existing trade flows, potentially reinforcing product tightness later in 2026. According to IEA, NGLs remain the most opaque segment of the oil complex. Since 2024, their surplus has accounted for a growing share of the overall oil balance overhang, helping explain the weak correlation between oil balances and crude prices. However, a widening and unexplained gap has emerged between the NGL balance and known NGL stocks since 2023, IEA noted. The global oil market is oversupplied on paper, but the surplus is unevenly distributed, according to IEA. Crude oversupply is concentrated offshore and in China rather than in key pricing hubs, refined products remain structurally tight, and NGL balances are poorly understood. Together, these factors explain why oil prices and market structure have remained more resilient than the global balance alone would suggest.
Oil Prices Rise Globally Amid Escalating Tensions Between the U.S. and Venezuela - Oil prices rose on Monday, recovering part of last week’s 4% decline, as concerns over potential production disruptions stemming from escalating tensions between the United States and Venezuela outweighed ongoing worries about oversupply and the possible impact of a peace agreement between Russia and Ukraine. Brent crude futures rose by 25 cents, or 0.4%, to $61.37 per barrel at 00:55 GMT, while U.S. West Texas Intermediate (WTI) crude increased by 23 cents, or 0.4%, to $57.67 per barrel. “Peace talks between Russia and Ukraine have oscillated between optimism and caution, while tensions between Venezuela and the United States are escalating, raising concerns about potential supply disruptions.” “However, in the absence of a clear outlook for markets, concerns about oversupply remain, and unless geopolitical risks escalate sharply, WTI crude prices could fall below $55 early next year.” Ukrainian President Volodymyr Zelenskyy offered to abandon his country’s aspiration to join NATO during five hours of talks with U.S. envoys in Berlin on Sunday. Negotiations are set to resume on Monday. U.S. envoy Steve Witkoff said that “significant progress” had been made, without providing further details. On Friday, the Ukrainian military announced an attack on a major Russian oil refinery in Yaroslavl, northeast of Moscow, with industry sources saying the refinery had halted production. Russian government oil and gas revenues are expected to fall by nearly half in December compared with last year, reaching 410 billion rubles ($5.12 billion), due to lower crude prices and a stronger ruble, according to Reuters calculations released on Friday. A potential peace agreement could contribute to increased Russian oil supplies, which are currently subject to Western sanctions. Meanwhile, Venezuelan opposition leader MarÃa Corina Machado pledged political change on Friday after secretly leaving the country to receive the Nobel Peace Prize, amid escalating fallout from the Trump administration’s seizure of an oil tanker last week. According to shipping data, documents, and maritime sources, Venezuelan oil exports dropped sharply following the seizure and the imposition of new sanctions on shipping companies and vessels dealing with Venezuela in Latin America. On the supply side, U.S. energy companies last week cut the number of active oil and natural gas drilling rigs for the second time in three weeks, according to Baker Hughes, one of the world’s leading energy technology and oilfield services companies.
Oil Holds Near Multi-Week Lows as Peace Diplomacy and Supply Risks Collide | Investing.com - Oil is stabilizing in early trading, yet the market remains anchored near its weakest levels since late October because the forces shaping price direction are pulling in opposite directions. Brent is trading at about 61.19 dollars a barrel, and WTI stands near $57.33 a barrel, showing modest gains of roughly 0.1 percent and 0.2 percent.The uptick reflects a mild improvement in sentiment after reports of firmer refinery runs and stronger consumption indicators in China, as well as renewed friction between Washington and Venezuela that has added a layer of uncertainty to regional supply flows. These incremental supports, however, are struggling to overpower a broader macro narrative that remains dominated by diplomatic maneuvering and supply expectations.Market positioning is increasingly influenced by the Trump administration’s accelerated push to secure a peace deal between Russia and Ukraine before year end. The prospect of a negotiated settlement and the potential rollback of sanctions on Moscow carry clear implications for future export volumes.Traders are beginning to factor in the risk that additional Russian barrels could reenter global markets at a moment when demand growth is still subdued. This possibility is reinforcing caution across the forward curve and helping explain why each intraday rebound has faded quickly, leaving both benchmarks unable to break out of their current range.At the same time, expectations of an oversupplied market next year continue to limit speculative interest. OPEC plus producers have been lifting output into a soft demand environment, and non OPEC supply remains robust enough to challenge the group’s ability to manage inventories. With storage levels comfortable and refined product markets showing mixed signals, investors are reluctant to treat small price gains as the start of a durable trend. Instead, the prevailing behavior points to a market that is waiting for either a decisive policy signal or a material shift in supply data before committing to direction. The next phase for crude hinges on how peace negotiations evolve and whether producers recalibrate output in response to weakening prices. The base case for many traders is a slow grind with Brent and WTI holding close to current levels as diplomacy proceeds unevenly and supply growth remains steady. The risk scenario is a sharper downturn if formal progress toward a Russia Ukraine settlement accelerates and sanctions relief becomes credible enough to trigger expectations of larger export flows. Crude is trading in a narrow band because the balance of risks is unusually dependent on political outcomes, and until those uncertainties clear, rallies are likely to stay constrained and dips are likely to meet hesitant buying rather than conviction.
The Market Weighed Disruptions Linked to U.S-Venezuela Tensions -- The crude oil market sold off on Monday as the market weighed disruptions linked to increasing U.S-Venezuela tensions against the impact of a potential Russia-Ukraine peace deal. Venezuela’s oil exports have fallen sharply since the U.S. seized a tanker last week and imposed new sanctions on shipping companies and vessels conducting business with Venezuela. The oil market traded sideways in overnight trading and posted a high of $57.80. However, the market erased any gains and sold off to a low of $56.40 by mid-day. It traded mostly sideways during the remainder of the session as progress in U.S. peace talks to end the war in Ukraine kept the market under pressure. Officials meeting in Berlin said there was broad agreement on 90% of the issues between Ukraine and Russia. The January WTI contract settled down 62 cents at $56.82 and the February Brent contract settled down 56 cents at $60.56. The product markets ended the session lower, with the heating oil market settling down 1.74 cents at $2.1806 and the RB market settling down 1.98 cents at $1.7323. Ship monitoring data showed that a tanker carrying 300,000 barrels of Russian naphtha for Venezuelan state oil company PDVSA and at least four supertankers due to pick up crude cargoes in Venezuela have made u-turns after the U.S. seized a vessel carrying Venezuelan crude. The U.S. Coast Guard last week intercepted and seized a very large crude carrier carrying some 1.85 million barrels of Venezuelan heavy oil sold by PDVSA. The seizure left more than 11 million barrels stuck onboard other vessels in Venezuelan waters and has prompted some tanker owners to order u-turns to avoid problems, with an armada of U.S. ships patrolling the Caribbean Sea. At least four VLCCs that were in PDVSA’s schedules to load crude at Venezuelan ports in the coming weeks have also made u-turns in recent days. U.S. officials said Ukraine could receive security guarantees modeled on NATO’s Article 5 mutual defense pledge under a proposed peace deal with Russia, an unprecedented offer aimed at ending the war sparked by Moscow’s 2022 invasion. The officials said there was broad agreement on 90% of the issues between Ukraine and Russia. But they acknowledged that territory and sovereignty would still have to be resolved by the parties themselves. Earlier, U.S. peace negotiators told Ukraine during peace talks in Berlin that it must agree to withdraw its forces from the eastern Donetsk region as part of any deal to end the nearly four-year-old war. Ukraine has said previously it would not cede territory to Russia. The talks in Berlin were led on the U.S. side by Trump envoys Steve Witkoff and Jared Kushner, the president’s son-in-law. European leaders said they had agreed on Monday that any decisions on potential Ukrainian territorial concessions to Russia could only be made once strong security guarantees were in place which should include a European-led multinational force. The U.S. Department of Transportation has declared a regional emergency for Delaware, New Jersey, New York and Pennsylvania due to cold weather and a power outage at a Pennsylvania gas refinery that disrupted the flow of propane. The declaration, made on Friday, allows carriers hauling propane, natural gas, and heating oil to bypass maximum driving time rules while providing direct assistance to the emergency.
Oil Prices Slip as Ukraine Peace Talks Progress and China's Economy Stalls | OilPrice.com - Oil prices were under pressure in early Asian trading on Tuesday as growing optimism around Russia-Ukraine peace talks and disappointing economic indicators out of China undercut market sentiment, reinforcing downside pressure on crude benchmarks.At the time of writing, WTI crude hovered at $56.49 a barrel, down roughly 0.6%, while Brent crude was trading at $60.20, also about 0.6% lower. These levels reflect continued softness from the prior session’s declines.Rising optimism over a potential peace deal to end the Russia-Ukraine conflict added to downward pressure as U.S. officials proposed NATO-style security guarantees for Ukraine in talks with Kyiv in Berlin. President Trump suggested that the negotiators are "closer now than we have been ever." If a deal were to be made, it would likely lead to an easing of sanctions and an increase in future Russian oil supply. Compounding the bearish narrative in oil markets, weak economic data out of China, the world’s largest crude importer, boosted concerns of oversupply. Official statistics released on Monday showed China’s factory output slowing to a 15-month low and retail sales expanding at their slowest pace in nearly three years. These figures heightened market worries about the strength of global oil demand in 2026.Soft demand signals from China, coupled with ongoing trade and industrial headwinds in other parts of Asia, are reinforcing macro pressures that have kept crude prices under strain for months now.For now, oil traders will remain reluctant to chase prices higher until there is a clear movement in demand signals or a major supply disruption.
Oil prices fall to 4-year low below $55 as supply glut shows up -- Crude oil prices fell to levels not seen since the start of 2021 as a widely expected supply glut picked up momentum and peace talks in the Russia-Ukraine conflict took steps forward. Futures on international pricing benchmark Brent crude (BZ=F) fell by more than 2% to trade below $59 on Tuesday, while futures on US benchmark West Texas Intermediate (WTI) crude (CL=F) fell over 3% to at one point trade below $55. Both energy products reached levels Tuesday that had not been seen since February 2021 as analysts pointed to an outlook marked by "extraordinary oversupply." Both Brent and WTI crude are headed for yearly losses of more than 20% as the market has been flooded with supply. The Organization of the Petroleum Exporting Countries and its allies (OPEC+) have been unwinding cuts at a significant rate, increasing the amount of barrels added to the market each month, while other supplier countries outside of the Americas have been raising their levels.Between April and December, OPEC+ member countries increased production by 2.9 million barrels per day as Saudi Arabia sought to retake market share and price control from the West. In the US, the federal Energy Information Administration expects domestic oil inventories to continue building through 2026 as well. Even with a recent decision by OPEC to hold production rates steady through the first quarter, the International Energy Agency said last week that it now expects 2026's oil glut to reach 3.8 million barrels per day.On the water, crude tankers at sea are now holding more than 1 billion barrels — a figure that has steadily risen over the past few months as sellers have had a harder time finding buyers willing to take the oil. Prices for Dubai crude oil, a key pricing benchmark in the Asian market, and barrels on the US Gulf Coast both slipped into contango on Tuesday morning, according to Bloomberg data.Contango is a market pattern where futures prices further out on the curve are higher than near-dated futures or spot prices as costs for storage, financing, and carry become steeper and traders look for a looser market to come.The price action pressure is also showing up in refined products. Crack spreads, or the difference between oil and its derived products, like jet fuel, gasoline, and diesel, have tightened over the past month while prices on the crude derivatives, which had been supporting overall pricing strength in the oil market, have fallen.The Street is bearish on the market. Commodities strategists at JPMorgan Chase and Goldman Sachs expect Brent prices to slip into the $50s per barrel in 2026, reaching levels not seen since the start of the pandemic, when an overnight halt in cars on the road briefly pushed prices negative."At the risk of flogging a very dead horse, our message to the market has remained consistent since June 2023," JPMorgan strategists wrote in a note to clients. "While demand is robust, supply is simply too abundant."If the OPEC+ cartel, which has agreed to pause unwinding through the first quarter, doesn't shift to cutting barrels and other producers don't slow down as well, the strategists see oil possibly dropping into the $40s or even $30s per barrel — levels that would be catastrophic for the industry.Given all of this, Macquarie oil analysts wrote in a recent note to clients that the market's downward momentum is outstripping even their bearish outlooks. "Our near-term balances now appear even more bearish than what we had previously characterized as 'cartoonishly' oversupplied," the analysts wrote.
Oil settles near five-year low amid ample supply, Russia-Ukraine progress (Reuters) - Oil futures settled at their lowest level since February 2021 on Tuesday amid ongoing jitters surrounding oversupply and as the prospect of a Russia-Ukraine peace deal appeared to strengthen, raising expectations sanctions could be eased. Brent crude futures settled down $1.64 a barrel, off roughly 2.71%, to $58.92 a barrel, while U.S. West Texas Intermediate crude closed at $55.27, down $1.55, or 2.73%. "Brent has dropped this morning to below $60 per barrel for the first time in months, as the market assesses a potential peace deal resulting in additional Russian volumes becoming available and oversupplying the market further," The U.S. offered to provide NATO-style security guarantees for Kyiv and European negotiators reported progress in talks on Monday, sparking optimism that an end to the war was closer.Russia, meanwhile, said it was not willing to make any territorial concessions, state news agency TASS quoted Deputy Foreign Minister Sergei Ryabkov as saying.The six-month Brent futures spread moved into a contango for the first time since October.Barclays analysts expect Brent to average $65/bbl in 2026, slightly ahead of the forward curve, due to the expected 1.9 million bpd surplus they see as being priced in already.“This price decline underscores the structural dynamics of today’s energy market—ample supply and sluggish demand. Unless geopolitical risks or policy shifts intervene, this softness could persist well into next year," Adding to the pressure, soft Chinese economic data on Monday further fuelled concerns that global demand may not be strong enough to absorb recent supply growth, said IG market analyst Tony Sycamore.China's factory output growth slowed to a 15-month low, official data showed. Retail sales also grew at their slowest pace since December 2022, during the COVID-19 pandemic. Fears of an oversupply were marginally offset by the U.S. seizing an oil tanker off Venezuela last week, but traders and analysts said a glut of floating storage and a surge in Chinese buying from Venezuela in anticipation of sanctions were also limiting the market impact.
Oil prices rise as tension between US and Venezuela escalates --Oil prices rose on Wednesday morning as supply concerns increased after US President Donald Trump ordered a “complete and total” blockade of sanctioned oil tankers moving in and out of Venezuela. Brent, the benchmark for two thirds of the world's oil, was up 1.37 per cent at 11.02am UAE time to $59.73 a barrel, while West Texas Intermediate, the gauge that tracks US crude, was trading 1.45 per cent higher at $56.07 a barrel. This came after WTI fell to its lowest levels since early 2021 this week on the prospect of more Russian oil entering global markets as peace talks to end the Ukraine war gain momentum. Trump orders blockade of sanctioned tankers off Venezuela Trump orders blockade of sanctioned tankers off Venezuela Read More Rising supply risk from Venezuela is offering only “marginal support” to crude, because of the country’s relatively small export volumes, said Vandana Hari, chief executive of Singapore-based Vanda Insights. However, upbeat US rhetoric over a Ukraine peace deal, and expectations of a milder-than-normal Northern Hemisphere winter are putting downwards pressure on oil prices on oversupply concerns, she added. Mr Trump on Tuesday ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, putting oil flowing out of South American country at risk. This came after US troops seized a “very large” oil tanker off the Venezuela coast last week as the Trump administration continues to put pressure on Venezuelan President Nicolas Maduro and his government. The oil tanker, which had been under US sanctions for years, had been used to smuggle oil from Venezuela and Iran, according to US officials. Venezuela produces 1.1 million barrels a day, with the oil mainly flowing to China and India, according to Rystad Energy analysis. Although the volume is small in terms of global trade flows, representing about 1 per cent, but the quality is unique as more than 67 per cent of the output is heavy, it added. “Benchmark crude oil prices could be impacted significantly by escalating military tensions between the US and Venezuela, with the Trump administration tightening pressure on Nicolas Maduro’s regime and signalling the possibility of a US incursion,” Rystad said. But, despite Venezuela tensions, “oil markets remain weighed down by structural oversupply concerns”, Soojin Kim, a research analyst at MUFG Bank, said. This was due to output increase from Opec+, tepid demand concerns and a potential Ukraine peace deal that could ease curbs on Russia crude “leaving prices on track for an annual decline”, she added. Oil prices have been volatile this year with the Russia-Ukraine war and peace talks to end it. Mr Trump's tariffs and the decision by Opec+ to unwind production cuts has also affected prices. Traders expect more oil to enter global markets next year as the producers' group boosts output amid lower demand. Last month, Opec+ agreed to another output increase of 137,000 bpd for December. However, it paused production rises for the first quarter of next year.
Trump Venezuela blockade sends global oil prices soaring over 2% -Global crude oil prices surged more than 2% early Wednesday, December 17, after U.S. President Donald Trump announced a naval blockade targeting Venezuela’s oil exports. This news rattled energy markets and sent shockwaves through global finance. The global benchmark Brent Crude jumped to $60.29 per barrel, a gain of over 2.3% while the U.S. West Texas Intermediate (WTI) benchmark rose 2.37% to $56.59. The rally sharply reversed a recent slump that had seen Brent dip below $60 a barrel for the first time since May, driven by supply gluts and optimism over a potential Russia-Ukraine peace plan. President Trump posted on Truth Social late Tuesday, declaring he had ordered a “total and complete blockade” of all sanctioned oil tankers entering and leaving Venezuela, which he described as being “completely surrounded by the largest Armada ever assembled in the history of South America.” Moreover, he referred to the government of Nicolas Maduro as a “foreign terrorist organization" alleging Venezuela’s oil revenues fund “Drug Terrorism, Human Trafficking, Murder, and Kidnapping.” According to market analysts, prices were rising in anticipation of a significant reduction in Venezuelan exports, which is a major OPEC producer, though traders are awaiting details on how the blockade will be enforced and whether it might extend to non-sanctioned vessels. Beyond oil prices, other assets also got lifted due to geopolitical shockwaves. Gold prices advanced toward record highs above $4,330 an ounce. European stock markets climbed, led by giants BP and Shell, which both gained over 2%. The U.S. dollar strengthened, and Treasury yields edged higher. For now, traders are bracing for reduced supply and heightened volatility, as the Trump administration’s latest move transforms a long-stranding economic pressure campaign into a naval confrontation with one of the world’s largest oil producers.
Oil rises as Trump's Venezuela blockade takes edge off global crude surplus concerns (Reuters) - Oil prices rallied by more than 1% on Wednesday after U.S. President Donald Trump ordered a blockade of all oil tankers under sanctions entering and leaving Venezuela, raising global political tensions and easing concerns about a swelling surplus of global crude. Brent crude futures settled at $59.68 a barrel, rising 76 cents, or 1.3%. U.S. West Texas Intermediate crude settled at $55.94 a barrel, up 67 cents, or 1.2%. Growing U.S. fuel inventories tempered the rise in oil prices. Prices had settled near five-year lows in the previous session on signs of progress in Russia-Ukraine peace talks. A peace agreement could see Western sanctions on Moscow eased, freeing up supply as the market grapples with fragile global demand. On Tuesday, Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, saying he regarded President Nicolas Maduro's administration as a foreign terrorist organization. The Venezuelan government said in a statement it rejected Trump's "grotesque threat." Trump made his blockade comments a week after the U.S. seized a sanctioned oil tanker off Venezuela's coast. It is unclear how many tankers will be affected and how the U.S. will impose the blockade, and whether Trump will turn to the U.S. Coast Guard to interdict vessels, as he did last week. In recent months, the U.S. has moved warships into the region. Some energy experts are skeptical that Trump's latest actions would make a meaningful dent in global crude oil supplies. "While U.S. actions may inject short-term noise and modest risk premium, they are insufficient on their own to tighten global balances or drive a sustained rally in crude prices," Kpler energy analysts said in a note. While many vessels picking up oil in Venezuela are under sanctions, others transporting the country's oil and crude by way of Iran and Russia have not been sanctioned. Tankers chartered by Chevron are carrying Venezuelan crude to the U.S. under an authorization previously granted by Washington. China is the biggest buyer of Venezuelan crude, which accounts for about 1% of global supplies. Adding further uncertainty to Venezuela's energy production, state-run oil company PDVSA on Wednesday said it was resuming at its terminals following a cyberattack that affected its centralized administrative systems. At least two tankers carrying oil byproducts, including methanol and petroleum coke, departed from Venezuela's largest port, Jose, according to ship-tracking data and internal documents from state company PDVSA. The U.S. has not targeted exports of oil byproducts or petrochemicals since it first imposed energy sanctions on Venezuela in 2019. Rising inventories of gasoline and distillate in the U.S. took some of the steam out of crude oil's rise. While crude inventories fell last week, those of gasoline and distillate grew more than analysts expected, according to the U.S. Energy Information Administration. Crude inventories dropped by 1.3 million barrels to 424.4 million barrels in the week ended December 12, the EIA said, compared with analysts' expectations in a Reuters poll for a draw of 1.1 million barrels. U.S. gasoline stocks, meanwhile, added 4.8 million barrels in the week to 225.6 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a build of 2.1 million barrels. Distillate stockpiles, which include diesel and heating oil, rose by 1.7 million barrels in the week to 118.5 million barrels, versus expectations for a rise of 1.2 million barrels, the EIA data showed.
Oil prices rise after Venezuela on blockade (Saba) - Oil prices rose by about a dollar in Asian trading on Thursday after US President Donald Trump announced a blockade on oil tankers entering and leaving Venezuela, further disrupting most of the country's exports. West Texas Intermediate (WTI) crude rose 98 cents, or 1.7 percent, to $56.89 a barrel by 0120 GMT, after initially rising by more than a dollar. Brent crude climbed 92 cents, or 1.54 percent, to $60.60 a barrel, according to Reuters. News of the US blockade on Venezuela pushed oil prices up by more than 1 percent during Wednesday's session, recovering from five-year lows reached amid progress in the Ukrainian peace talks, which could pave the way for easing sanctions on Russia. Venezuelan crude accounts for about 1 percent of global supply, with most of it exported to China. However, market sources indicate that weak demand and an abundance of crude oil available on floating storage units in Asia are reducing the impact of the latest developments on the world's largest oil importer.
Oil Futures Climb Again on Venezuela Tanker Blockade – DTN - Oil prices climbed again on Thursday, Dec. 18 as a second day of a U.S. naval blockade on Venezuela lent support to a market otherwise thin on news. Increasing U.S. actions against Venezuela kept up the risk premium in crude in today's session after U.S. President Donald Trump announced Tuesday, Dec. 16, a naval blockade against all sanctioned tankers attempting to access Venezuelan oil. Trump has said that the United States wants to reclaim its "land, oil rights and assets" in Venezuela. U.S. oil firms ExxonMobil and ConocoPhillips were expelled in 2007 from production sharing contracts in that country, leaving Chevron as the only remaining American operator. Weekly U.S. crude inventory draw reported by the Energy Information Administration (EIA) on Wednesday, Dec. 17, also contributed to the upside in crude futures. The EIA's Weekly Petroleum Status Report showed Wednesday, Dec. 17, that commercial oil reserves dropped by 1.3 million bbl to 424.4 million for the week to Dec. 12. This morning, the Bureau of Labor Statistics report that U.S. Consumer Price Index (CPI) dipped 0.3% year-on-year in November, bringing the annual rate of inflation for the all-items index to 2.7%. It was the first reading below 3% since August, though still above the U.S. Federal Reserve's 2% target. The data did little to change the bullish sentiment in oil futures. NYMEX WTI crude for January delivery settled up $0.21, or 0.4%, at $56.15 bbl. It rallied 1.2% on Wednesday, Dec. 17, to recover from the prior session's 2021 low of $54.89. ICE Brent futures for February settled up $0.14, or 0.2%, at $59.82 bbl, adding to Wednesday's higher settlement of 1.4%. February Brent slid beneath the key $60 bbl support two days earlier. NYMEX front-month gasoline closed virtually flat, rising $0.0007 gallon, to close at $1.7013. It dropped beneath the key $1.60 mark earlier in the week. Front-month ULSD was also little changed, settling down $0.0030 at $2.1316 bbl. The U.S. Dollar Index was up 0.103 points at 98.105 against a basket of currencies.
Another Round of Sanctions Expected on Russia's Energy Sector - The oil market steadied as the market assessed the likelihood of further U.S. sanctions against Russia and the impact of a blockade of Venezuelan oil tankers. On Wednesday, Bloomberg reported that the U.S. is preparing another round of sanctions on Russia’s energy sector in the event that Russia does not agree to a peace deal with Ukraine. The market also traded mostly sideways following President Trump’s announcement on Tuesday that the U.S. would blockade tankers under sanctions entering and leaving Venezuela. The crude market posted a high of $57.03 in overnight trading before it erased some of its gains and posted a low of $55.88 early in the morning. The market later bounced off its low and retraced some of its earlier losses and settled in a sideways trading range. The January WTI contract settled up 21 cents at $56.15 and the February Brent contract settled up 14 cents at $59.82. The product markets ended the session in mixed territory, with the heating oil market settling down 1.79 cents at $2.1316 and the RB market settling up 70 points at $1.7013. The Kremlin said Russia is preparing contacts with the United States to find out what changes have been made to Washington’s Ukraine peace plan after its consultations with Ukraine and European governments. Politico reported that U.S. and Russian officials are expected to meet in Miami over the weekend, and that the Russian delegation would include Russian President Vladimir Putin’s investment envoy Kirill Dmitriev. On Wednesday, Russia’s President said Russia would take more land in Ukraine by force if Kyiv and European politicians did not engage over U.S. proposals for a peace settlement. Russia’s Foreign Ministry said that it hoped that U.S. President Donald Trump’s administration did not make a fatal mistake over Venezuela and said that Moscow was concerned about U.S. decisions that threatened international navigation. The European Union imposed sanctions on 41 more ships in Russia’s shadow fleet, taking the total of designated vessels to almost 600. The EU Council said the ships are now banned from entering EU ports and can no longer receive a broad range of services related to maritime transport. Bloomberg reported that an increasing number of ships laden with Russia’s Urals crude are off China’s coast, in the hope that independent refiners there will take the crude as India’s demand declines due to U.S. sanctions. Bloomberg reported that an oil tanker caught fire after an overnight drone attack on Russia’s southern city of Rostov, as Ukraine expands the scope of its strikes on energy assets. The Treasury Department said the United States imposed sanctions on 29 vessels, carrying Iranian oil, and their management firms, as Washington continues targeting Tehran’s “shadow fleet” it says exports Iranian petroleum and petroleum products. The U.S. EPA reported that the U.S. generated fewer renewable blending credits in November than in October. It reported that about 1.14 billion ethanol blending credits were generated in November, compared with about 1.28 billion in October. Credits generated from biodiesel blending fell to 603 million in November from 667 million in the previous month.
Oil prices little changed as market waits for news on possible Russia-Ukraine peace - Oil prices were little changed on Friday as the market waits for news about a possible Russia-Ukraine peace deal and interest rate decisions from central banks around the world. Prices lacked direction despite concerns over possible disruptions from a U.S. blockade of Venezuelan tankers. Brent futures rose 13 cents or 0.2% to $59.95 per barrel at 10:54 a.m. EST (1554 GMT), while U.S. West Texas Intermediate (WTI) crude rose 16 cents or 0.3% to $56.31. That put Brent and WTI down about 2% so far this week after both crude benchmarks fell about 4% last week. As U.S. President Donald Trump seeks an end to Europe’s deadliest conflict since World War Two, Russian President Vladimir Putin said the onus was on Ukraine and Europe to make the next move toward peace. European Union leaders decided on Friday to borrow cash to loan 90 billion euros ($105 billion) to Ukraine to fund its defense against Russia for the next two years rather than use frozen Russian assets, sidestepping divisions over an unprecedented plan to finance Kyiv with Russian sovereign cash. Putin offered no compromise on Friday on his terms for ending the war in Ukraine and accused the European Union of attempting “daylight robbery” of Russian assets. Ukraine, meanwhile, struck a Russian “shadow fleet” oil tanker in the Mediterranean Sea with aerial drones for the first time, an official said on Friday, reflecting the growing intensity of Kyiv’s attacks on Russian oil shipping. “The (oil) complex is posting small gains in holding above lows established earlier this week as it awaits further guidance regarding Ukraine/Russian peace talks as well as fresh headlines out of Venezuela as to the potential impact of the apparent Trump tanker blockade,” analysts at energy advisory firm Ritterbusch and Associates said in a note. Trump told NBC News in an interview that he was leaving the possibility of war with Venezuela on the table. Uncertainty over how the U.S. would enforce Trump’s intent to block sanctioned tankers from entering and leaving Venezuela tempered geopolitical risk premiums, IG analyst Tony Sycamore said. Venezuela, which pumps about 1% of global oil supplies, on Thursday authorized two unsanctioned cargoes to set sail for China, said two sources familiar with Venezuela’s oil export operations. Central banks in big economies are signalling a possible change of stance on interest rates, which are used to keep inflation in check. Higher interest rates increase the cost of borrowing for homes and businesses, which can reduce economic growth and oil demand. The Bank of Japan raised interest rates on Friday to levels unseen in 30 years, taking another landmark step in ending decades of huge monetary support and near-zero borrowing costs. European Central Bank policymakers warned on Friday about oversized risks around their latest economic projections, making the case for caution in setting policy and not taking the option of another interest rate cut off the table just yet. Reserve President John Williams told CNBC on Friday he does not see an imminent need to follow last week’s interest rate cut with another reduction in borrowing costs, adding that new inflation data is being buffeted by distortions.
Oil prices rise after Trump says he won't rule out war with Venezuela -U.S. crude oil prices rose on Friday after President Donald Trump told NBC News that he will not rule out war with OPEC member Venezuela."I don't rule it out, no," Trump told the news outlet in a phone interview. He declined to say whether overthrowing President Nicolas Maduro is his goal. “He knows exactly what I want," Trump told NBC. "He knows better than anybody." The oil market right now is not indicating a major risk of a supply disruption. U.S. crude oil rose 51 cents, or 0.91%, to close at $56.66 per barrel, while global benchmark Brent gained 65 cents, or 1.09%, to settle at $60.47. The U.S. benchmark fell to four year lows earlier this week as traders priced in the possibility of a peace agreement in Ukraine that would bring more Russian crude into a well supplied market.Trump has been ramping up pressure on Maduro. He ordered ablockade of sanctions oil tankers off the South American nation's coast after seizing a vessel a last week.The U.S. has staged a major military buildup in the Caribbean and launched deadly strikes on boats that it claims are trafficking drugs to the U.S. The legality of those strikes is disputed and has been the subject of scrutiny by Congress. Venezuela is a founding member of OPEC and has the largest proven oil reserves in the world. It is exporting about 749,000 barrels per day this year with at least half that oil going to China, according to data from Kpler. Venezuela exports about 132,000 bpd to the U.S., according to Kpler.
Oil Up Third Day but Down on Week as Glut Concerns Persist (DTN) -- Oil futures rose for a third straight session Friday, Dec. 19, extending their rebound from multi-year lows. But a second consecutive week of losses persisted for the crude and fuel markets amid concerns about oversupply. A U.S. naval blockade that prevented supply from leaving OPEC producer Venezuela has supported oil markets since the close of Tuesday's trading. But price drops in the first two days of the week proved larger than the recovery that followed, resulting in the weekly losses. In Friday's session, the NYMEX WTI crude contract for January delivery was up $0.54, or 1%, at $56.54 bbl while showing a weekly loss of 2%. January WTI hit a 2021 low of $54.89 on Tuesday as concerns over a global oil glut grew with the U.S. appearing closer in its goal of reaching a solution to the Ukraine war that could take sanctions off Russian oil. ICE Brent futures for February rose $051, or 0.9%, to $60.33 bbl, against a weekly drop of 1.3%. February Brent slid beneath the key $60 bbl mark three days earlier. NYMEX front-month gasoline climbed $0.0099 to $1.7112 gallon while showing a weekly deficit of 2%. It dropped beneath the key $1.68 gallon level earlier in the week. Front-month ULSD advanced $0.0049, or 0.2%, to $2.1365 gallon while persisting with a 3% slide on the week. In other market news, the Energy Information Administration announced late Thursday, Dec. 18, that its weekly petroleum and propane market reports due on Dec. 24 will be delayed until Dec. 29 as part of its holiday schedule.
Oil posts second weekly drop on potential Russia-Ukraine peace deal - Oil prices recorded a second steep weekly loss, as market participants continued to digest the growing prospects of a peace deal between Russia and Ukraine. This has also offset concerns about supply disruption in the midst of simmering tension between the US and Venezuela. Together with the Russia-Ukraine talks, these themes have dominated the oil market since last week. Brent, the benchmark for two thirds of the world's oil, gained 1.1 per cent to close at $60.47 a barrel on Friday. West Texas Intermediate, (WTI), the gauge that tracks US crude, gained 0.9 per cent to settle above $56.6 a barrel. That put Brent and WTI down about 1 per cent this week after both crude benchmarks fell about 4 per cent last week. In the year to date, Brent has now given up 20 per cent, while WTI has receded by 22 per cent. The week's developments have shown signs of extending oil's reduction, as market participants price in a large oversupply for early 2026, “Expectations for a peace settlement between Russia and Ukraine further pressured oil, as markets expect loosening of sanctions and a potential rise in Russian exports, which further support the oversupply theme.” Negotiations about ending the war in Ukraine have reached a “major moment”, UK Defence Secretary John Healey said this week, despite warnings that the peace deal is an “illusion” that Russia will not accept.The outcome of high-level talks involving top US envoys in Berlin, where Ukraine appeared to accept that any deal would mean it could not join Nato, has been well received in Washington. US President Donald Trump hailed potential progress from “very long and very good talks” with Ukrainian President Volodymyr Zelenskyy and the leaders of the UK, France, Germany and Nato.“I think we’re closer now than we have been ever,” Mr Trump said.Meanwhile, oil prices rose early on Wednesday as supply concerns increased after Mr Trump ordered a “complete and total” blockade of sanctioned oil tankers moving in and out of Venezuela – part of continuing US military action against the South American country.The US has bolstered its forces in what Washington says is a campaign to curb illegal drugs. Venezuelan President Nicolas Maduro has accused the White House of attempting to use military pressure to overthrow him. Caracas has also suggested the US is attempting to get hold of Venezuela's crude reserves, which were estimated at more than 300 billion barrels last year, and are the world's largest. Saudi Arabia is ranked second with 267 billion barrels.The oil market has also been weighed down by Opec+ moves to boost production, analysts at MUFG Bank have said.The Opec+ group of producers, led by Saudi Arabia and Russia, last month agreed to keep oil production levels unchanged and approved a mechanism to determine members' maximum output capacity.Oxford Economics expects the Opec+ output hike pause to be extended to the second quarter of 2026, “dragging on first-half momentum”. Analysts at the UK-based research firm expect Gulf countries to “resume raising oil supply again in the second half of 2026 and project a full unwinding of the remaining caps on production by mid-2027” .
US seizes second oil tanker off Venezuela’s coast as Trump ups pressure on Maduro - U.S. personnel seized a second oil tanker off the coast of Venezuela on Saturday as President Trump ratchets up the pressure on Venezuelan President Nicolas Maduro. The seizure of the vessel, which took place in international waters, was led by the Coast Guard and assisted by the U.S. military, Department of Homeland Security (DHS) Secretary Kristi Noem announced on Saturday. The vessel was docked in Venezuela. “The United States will continue to pursue the illicit movement of sanctioned oil that is used to fund narco terrorism in the region. We will find you, and we will stop you,” Noem said in a post on social platform X, attaching a 7-minute video of the operation. The Hill has reached out to the White House for comment. Defense Sec. Pete Hegseth later hailed the seizure. “President Trump has been clear: the blockade of sanctioned oil tankers departing from, or bound for, Venezuela will remain in full force until Maduro’s criminal enterprise returns every stolen American asset,” he wrote in a post on X. “The @DeptofWar, with our partners at @USCG, will unflinchingly conduct maritime interdiction operations — through OPERATION SOUTHERN SPEAR — to dismantle illicit criminal networks. Violence, drugs, and chaos will not control the Western Hemisphere.” Hegseth did not note if the seized tanker is on the Treasury Department’s list of sanctioned vessels.” The move by U.S. authorities comes just days after President Trump said his administration would impose a “blockade” on all sanctioned oil tankers sailing in and out of Venezuela. The news of the seizure was first reported by Reuters. “The illegitimate Maduro Regime is using Oil from these stolen Oil Fields to finance themselves, Drug Terrorism, Human Trafficking, Murder, and Kidnapping,” the president said earlier this week.
Israel approves $34 billion natural-gas deal with Egypt - Israeli Prime Minister Benjamin Netanyahu announced Wednesday the approval of the country’s largest-ever natural gas export agreement—a deal worth 112 billion shekels ($34.5 billion) that will send fuel to Egypt through 2040. The agreement with U.S. energy company Chevron and Israeli partners is expected to generate about 58 billion shekels ($17.9 billion) in state revenue through taxes and royalties, with funds designated for education, health, infrastructure and security. The deal also includes more than 16 billion shekels ($4.9 billion) in direct infrastructure investment. “This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region. It encourages other companies to invest in gas exploration in Israel’s economic waters,” Netanyahu said alongside Energy and Infrastructure Minister Eli Cohen following the approval. “More gas will be found, but first and foremost, this deal obligates the companies to sell gas at a good price to you—the citizens of Israel.” Revenue will start modestly, at about half a billion shekels ($154 million) annually during the first four years as companies expand pipeline infrastructure, then rise to about 6 billion shekels ($1.9 billion) per year, according to Netanyahu’s office. Cohen called the agreement a historic moment that establishes Israel as a regional energy power. The approval includes mechanisms to prioritize supply and improve gas pricing for the local market. “Natural gas is a strategic asset for the state. Prime Minister, you resolutely led the Gas Framework exactly a decade ago, and today we are reaping the fruits,” Cohen said. “We will continue to work toward bringing in additional local and international companies to invest in Israel to increase reserves for the local market and export.” In a world full of spin, truth matt
Israel’s Attacks on Lebanon Reconstruction Sites Amount to War Crimes – HRW - The Israeli military’s repeated attacks on reconstruction-related equipment and other civilian facilities in south Lebanon throughout 2025 “violate the laws of war and are apparent war crimes,” Human Rights Watch (HRW) said in a report on Monday. “Amid the ceasefire, Israeli forces have carried out attacks that unlawfully target reconstruction-related equipment and facilities,” said Ramzi Kaiss, Lebanon researcher at HRW. “After reducing many of Lebanon’s southern border towns to rubble, the Israeli military is now making it much more difficult for tens of thousands of residents to rebuild their destroyed homes and return to their towns.” HRW said residents and local municipal authorities have told the rights group that the attacks have hampered reconstruction efforts and the ability of tens of thousands of displaced people to return to their homes in southern Lebanon. Over 10,000 buildings were heavily damaged or destroyed there between October 2023 and January 2025, according to HRW. The rights group investigated four attacks on reconstruction-related sites, including three on six outdoor showrooms and maintenance facilities for bulldozers, excavators, and heavy machinery in the southern Lebanese towns of Deir Seryan, Msayleh, and Ansariyeh, as well as an attack on a cement and asphalt factory in Sinay. The strikes, between August and October 2025, months after a ceasefire between Israel and Hezbollah, killed three civilians and injured at least 11 people, the report stated. HRW researchers visited the sites and interviewed 13 people, including owners of the storage and maintenance facilities, mayors of the towns, a manager at the cement and asphalt factory, a government contractor, and three people working at an international nongovernmental organization providing aid in southern Lebanon. The rights group also reviewed inventory documents and contracts provided by three site owners. The four attacks destroyed over 360 heavy machines, including bulldozers and excavators, in addition to an asphalt and cement factory. Owners of heavy machinery sites told HRW that they sold or rented machinery throughout various areas of Lebanon, and that some of the machines that they sold or rented were used for civilian reconstruction efforts, including rubble clearing. “We can’t even clear the rubble (from our sites) because we’re afraid that, if we clear it, more of the machines we’re using for rubble-clearing might be struck,” Ibrahim Karim, owner of a site in Deir Seryan, said. “So here, we’ve moved the rubble with our own For each of the attacks, Israeli forces had issued statements that the equipment and materials were used by Hezbollah or “allowed,” “enabled” or were “intended” to be used by Hezbollah to “rebuild” or “reestablish” its “assets,” “activity,” or “infrastructure,” without revealing any details. HRW said it “did not find evidence of military targets in and around the sites,” adding that researchers were able to verify that some of the machinery and supplies were being utilized for civilian purposes. Researchers, it noted, were also unable to verify the use of all machinery and materials that were attacked, “but did not find any evidence of their use for military purposes by Hezbollah.”
Euro-Med Monitor Warns of Systematic Efforts to Empty Gaza of Skilled Professionals - According to Palestinian documentation, since October 7, 2023, Israeli forces have killed approximately 1,670 medical personnel, 257 journalists, 830 teachers and education staff, and 13,500 students. The Euro-Mediterranean Human Rights Monitor has warned of active and coordinated efforts to facilitate the departure of Gaza’s scientific, medical, academic, and media professionals, arguing that these practices amount to forced displacement and form part of a broader Israeli strategy to dismantle Palestinian society in the Strip.In an interview with Al-Jazeera, the head of the observatory, Dr. Rami Abdo, said that individuals with critical skills, including doctors, journalists, academics, and researchers, are being granted special visas or facilitated exit through official and unofficial mechanisms, often under unclear procedures. These arrangements, he explained, are commonly presented as scholarships, job opportunities, family reunification, or evacuation, but are implemented selectively and in coordination with the conditions imposed by Israel’s war on Gaza.Abdo said Euro-Med Monitor has documented communications with doctors in highly specialized fields that Gaza urgently needs, offering travel facilitation alongside promises of employment abroad. He stressed that this pattern becomes especially alarming when viewed in conjunction with Israel’s systematic targeting of the health sector, including the destruction of hospitals, the killing of medical staff, and the arrest of hundreds of doctors. Facilitating the departure of the remaining specialists, particularly those trained to treat war injuries, further cripples Gaza’s ability to sustain life.Abdo also pointed to the relative ease with which many prominent journalists have been able to leave Gaza, noting that those who exit are often replaced by less experienced reporters working under increasingly deadly conditions. According to him, this contributes to the erosion of professional capacity and institutional continuity, weakening Palestinian society’s ability to document and resist ongoing crimes.Abdo placed the killing and displacement of skilled professionals within what he described as a single, systematic plan. He said the occupation has pursued the direct assassination of professionals while simultaneously facilitating the departure of those who survive. Euro-Med Monitor has documented the killing of around 200 university professors and dozens of experts in various fields during the war. The result, he said, is an effort to re-engineer society so that Gaza is left without influential elites capable of leadership, reconstruction, or resistance.According to Palestinian documentation, since October 7, 2023, Israeli forces have killed approximately 1,670 medical personnel, 257 journalists, 830 teachers and education staff, and 13,500 students. While no precise figures exist for how many professionals have left Gaza, Abdo estimates that hundreds have already departed, many through opaque and poorly documented channels that raise serious concerns about coordination and intent.Abdo rejected attempts to frame these departures as voluntary. He argued that when livelihoods, healthcare, education, and basic survival are systematically destroyed, leaving becomes coerced rather than a free choice. Such practices, he said, constitute forced displacement, which is explicitly prohibited under international humanitarian law. While temporary evacuation for medical care does not violate international law, policies that lead to the systematic removal of professional groups fall under the prohibitions of the Geneva Conventions.He declined to name the embassies or consulates involved but said that international actors are participating in selective facilitation efforts that align with Israel’s broader policy of undermining Palestinian perseverance by emptying Gaza of its remaining intellectual and professional capacity.
Israeli Soldiers Shoot Settler near Kedumim after Assuming He Was Palestinian -- An illegal Israeli settler was shot and seriously wounded by occupation soldiers near Kedumim after they assumed he was Palestinian, only later confirming his identity as a settler. Israeli occupation soldiers opened fire on an individual at a gas station near the Kedumim settlement, between Qalqilya and Nablus in the occupied West Bank, after suspecting an attempted stabbing, Israeli media reported on Monday. Subsequent reports confirmed that the person shot was not Palestinian but an illegal Israeli Jewish settler. According to Al-Jazeera, Israeli radio later acknowledged that no stabbing incident had taken place and that soldiers had mistakenly shot a settler, leaving him in critical condition. According to Israeli Channel 14, the injured individual was a Jewish boy described as mentally disturbed. The report claimed that he had allegedly brandished a knife at soldiers stationed in the area, prompting them to open fire. Israeli emergency services said the boy was transferred to a hospital with very serious injuries. Israeli, Palestinian, and international human rights organizations have repeatedly condemned what they describe as a systematic Israeli policy of using lethal force against Palestinians under the pretext of alleged or suspected attacks. Rights groups have documented numerous cases in which Palestinians were shot at close range despite posing no imminent threat. This practice, they argue, amounts to extrajudicial killing and reflects a standing military doctrine that prioritizes summary execution over due process, particularly when the suspect is Palestinian.
Israeli Troops Raid Syria’s Quneitra, Capture Three Civilians Collecting Firewood - Israeli troops continue to carry out raids into southwestern Syria, once again centering on the northern parts of Quneitra Governorate and in and around the town of Jbata Al-Khashab, where troops established a checkpoint at the key Ain al-Bayda Junction nearby, hassling civilians and vehicles trying to pass by.Such checkpoints are becoming increasingly common in Quneitra and parts of Daraa, where Israeli troops move into an area, set up a checkpoint, and usually stay for just a few hours before withdrawing. Only occasionally does anything happen beyond inconvenience for the locals. Israeli troops were also operating in the area of al-Hamidiyah village, where they captured three people on the outskirts of the village who were gathering firewood. What they’re being charged with is unclear, and reportedly they were just arbitrarily “arrested.”
Ukraine Hits Russian Shadow Tanker in Mediterranean for First Time --Ukraine has hit an empty oil tanker of Russia’s shadow fleet in the Mediterranean in the first such drone attack in this sea in another escalation of the Ukrainian strikes on Russian vessels. The Qendil tanker, flying the flag of Oman, was targeted and hit by drones, Ukraine said on Friday. The vessel was empty, and its blow-up does not pose an environmental threat, sources with knowledge of the matter told Bloomberg. Ukraine has stepped up drone attacks on empty vessels of the Russian shadow fleet in recent weeks. As a result of this, oil tankers carrying Russian oil appear to be avoiding the fastest Black Sea route to the Turkish straits and travel along the Georgian and Turkish coasts to avoid drone attacks from Ukraine, according to ship-tracking data compiled by Bloomberg. At least two tankers that have loaded oil from Novorossiysk, the Russian port on the Black Sea, have recently traveled along the Georgian and Turkish coasts instead of taking the shortest route to the Bosphorus Strait, according to the data compiled by Bloomberg. The detour along the Georgian and Turkish coasts would add about 350 miles, or 70%, to the journey of an oil tanker from the port of Novorossiysk to the Turkish straits.Crude oil exports from the Russian terminals on the Black Sea were much lower in November than originally planned as bad weather and Ukrainian attacks on infrastructure have delayed loadings and departures. Ukrainian attacks have also crippled Russia’s fuel exports from the Black Sea ports in recent weeks. Ukrainian forces have increasingly targeted Russian oil-refining, storage, and export infrastructure using drones and missiles. The campaign has gained intensity in recent months, with the Center for European Policy Analysis noting a shift in strategy “from smaller-scale strikes on storage tanks to targeting hard-to-replace refinery equipment, like cracking units, much of it western-made and subject to sanctions.”
Modi greets Putin with pomp and ceremony as Trump demands New Delhi downgrade its ties with Russia -- India rolled out the red carpet for Russian President Vladimir Putin when he visited New Delhi earlier this month. This began with Indian Prime Minister Narendra Modi breaking with protocol to personally greet Putin as he stepped off the plane at the Palam Air Base, and continued throughout the two-day visit, which concluded with the signing of a slate of new agreements aimed at boosting trade, investment, labour mobility, defence and other ties. India’s demonstrative display of the “warmth” and “strength” of its decades-long strategic partnership with Russia was intended as a message to Washington that New Delhi will not allow the US to define its relationship with Moscow. The Modi government, building on the Indo-US Global Strategic Partnership its Congress Party predecessor negotiated, has dramatically expanded India’s military-security ties with Washington during its eleven years in office, transforming India into a veritable frontline state in US imperialism’s strategic confrontation with China. Yet to the dismay of Modi, his BJP government and the whole Indian ruling class, US President Donald Trump has repeatedly struck at India, demanding that it remove barriers to US exports and investment, cease Russian oil imports and otherwise downgrade its ties with Moscow. Since late August, most Indian exports to the US have been subject to 50 percent tariffs. This includes an India-specific 25 percent punitive tariff that Washington says will remain in place until India stops importing Russian oil. At 50 percent, India’s reciprocal tariff is higher than that the US has imposed on China, also a large importer of Russian oil, or any other country—and in the case of India’s arch-rival Pakistan (19 percent), far higher. Yet for all the pomp and ceremony and affirmations by both Modi and Putin of the strength of Indo-Russian ties, New Delhi and Moscow did not announce any of the rumoured new major military-defence deals. From the standpoint of the BJP government and the Indian ruling class, Putin’s visit for the 23rd India-Russia Annual summit was part of a precarious balancing act. India has long tried to straddle the growing geopolitical divide between Russia and the US and its NATO partners. But this has become ever more difficult, especially since the outbreak of the US-NATO-instigated Ukraine war. Trump is a further complicating factor. In a desperate bid to arrest the rapid erosion of US imperialism’s economic and geopolitical power, he is lashing out against avowed US strategic enemies and ostensible allies alike. Putin’s December 4-5 visit was his first to India since the outbreak of the Ukraine war. Eager to show that the western powers have failed to isolate Russia, Putin, like his Indian hosts, took every opportunity to play up the strength of Russo-Indian ties. In an India Today interview, Putin said he felt “very happy” to meet “my friend” Modi and praised their two countries’ cooperation in ship and aircraft manufacturing, nuclear energy, and space exploration. He also hit out at the US attempt to bully India to cease its imports of discounted Russian oil, noting, as Indian government officials repeatedly have, that the US and Europe continue to import Russian energy, including uranium and liquefied natural gas. “If the US has the right to buy our fuel,” said Putin,” why shouldn’t India have the same privilege?” Putin was accompanied by a high-level delegation, including Defense Minister Andrey Belousov, First Deputy Prime Minister and Industry Minister Denis Manturov, Central Bank Governor Elvira Nabiullina and prominent business leaders.
Putin Dismisses EU Leaders As 'European Swine' Who've Failed To Collapse Russia -President Vladimir Putin said on Wednesday that European leaders have continued stoking and hyping fears that Russia seeks expansion and that it is prepared even to go to war with EU and NATO countries. He went so far as to call EU officials "European swine" for their role in fueling the proxy war.He again emphasized that Moscow is in no way seeking war with Europe. "I have repeatedly stated: this is a lie, nonsense, pure nonsense about some imaginary Russian threat to European countries. But this is being done quite deliberately," he said.The Kremlin has repeatedly accused EU leaders of seeking to thwart peace, while praising that Washington's efforts to forge a deal under Trump appear genuine and are in good faith.However, the Trump admin is currently said to be preparing more sanctions on Russia's energy sector if Moscow persists in rejecting a peace deal. All the while, Zelensky is trying to "have is cake and eat it too" by on the one hand embracing the West's offer of 'Article 5-style' security guarantees and on the other refusing to make territorial concessions.Putin in his Wednesday remarks remained undeterred, vowing that Russia will accomplish its goals in Ukraine by diplomatic or military means. Currently, Moscow forces are expanding a "security buffer zone" there."First, the goals of the special military operation will undoubtedly be achieved. We would prefer to do this and address the root causes of the conflict through diplomacy," Putin said."If the opposing side and their foreign patrons refuse to engage in substantive discussions, Russia will achieve the liberation of its historical lands by military means. The task of creating and expanding a security buffer zone will also be consistently addressed."Among the more interesting parts of the speech came as follows: "And the European piglets immediately joined in this work of the former American [Biden] administration, hoping to profit from the collapse of our country. To regain something that had been lost in previous historical periods and try to take revenge.As is now obvious to everyone, all these attempts and all these destructive plans against Russia have completely failed."
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