Oil Prices Slip as Supply Glut Fears and Weak U.S. Demand Weigh on Market

Oil prices fell on Thursday, with Brent crude down 14 cents to $63.38 and WTI down 17 cents to $59.43, as investors grew concerned about an oversupplied market and sluggish U.S. demand. Global prices have now dropped for a third consecutive month, pressured by increasing output from OPEC+ and non-OPEC producers. U.S. crude stocks rose by 5.2 million barrels to 421.2 million, reflecting weak refinery activity and low consumption. Global oil demand growth reached only 850,000 bpd, below JPMorgan’s earlier forecast of 900,000 bpd. Analysts at Capital Economics expect prices to continue declining, projecting $60 per barrel by end-2025 and $50 by end-2026, despite minor support from recent sanctions on Russia’s major oil firms.

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Saudi Arabia Slashes December Oil Prices for Asia Amid Rising OPEC+ Output

Saudi Arabia has cut its December crude prices for Asian buyers, setting its official selling price (OSP) at $1 per barrel above the Oman/Dubai average, marking the first reduction since October. Arab Medium and Arab Heavy grades each fell by $1.40 per barrel, while Arab Extra Light dropped by $1.20 to $1.30 per barrel. The move follows OPEC+’s decision to increase oil output by 2.9 million bpd, representing 2.7% of global supply, before pausing production hikes in early 2026. The cuts reflect concerns over a potential global supply glut as production from OPEC+ members continues to rise. Analysts said the reductions were largely in line with market expectations, signaling Saudi Aramco’s intent to stay competitive in an oversupplied market.

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U.S. Senators Urge Hungary to Cut Russian Oil Imports Ahead of Trump-Orban Meeting

A bipartisan group of 10 U.S. senators is calling on Hungary to end its reliance on Russian fossil fuels as Prime Minister Viktor Orban prepares to meet Donald Trump in Washington. The senators urged Hungary to align with the EU’s plan to phase out Russian energy imports by 2027. The move follows the U.S. Treasury’s October sanctions on Russian oil giants Rosneft and Lukoil after failed cease-fire talks between Trump and Vladimir Putin. Meanwhile, a bipartisan sanctions bill targeting countries that continue to buy Russian oil remains stalled pending Trump’s approval.

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Russia’s November Oil Exports from Western Ports to Dip Amid Refinery Runs and Storms

Russia’s crude oil exports from its western ports — Primorsk, Ust-Luga, and Novorossiisk— are projected at 2.3 million bpd in November, according to shipping data and sources. The decline comes as Russian refineries ramp up processing and export terminals face seasonal storms and infrastructure constraints. However, attacks on Rosneft’s Tuapse and Lukoil’s Volgograd refineries could push more crude into export channels, offsetting some of the reduction. Transshipment of Urals, KEBCO, and Siberian Light grades via Novorossiisk reached a decade-high of 0.85 million bpd in October. Despite new U.S. and EU sanctions on Russian oil companies, western port export volumes remain largely unaffected so far, data from LSEG and traders show.

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Reliance Resells Middle Eastern Oil After Buying 12 Million Barrels to Replace Russian Supply

India’s Reliance Industries Ltd. bought at least 12 million barrels of spot crude from the Middle East and the Americas last month to replace Russian oil after U.S. sanctions targeted Rosneft and Lukoil. The purchases included Abu Dhabi Murban (1M bbl), Upper Zakum (2M bbl), Qatar Land (0.5M bbl), al-Shaheen and Khafji (3M bbl), Basrah Medium (2M bbl), Brazilian Tupi and Sapi (2M bbl), and U.S. WTI (2M bbl). Sellers included major traders such as TotalEnergies, BP, Gunvor, Aramco Trading, and Vitol. Reliance reportedly acquired up to 16 million barrels in total, some under undisclosed deals, but has since offered to resell certain cargoes — including 1 million barrels of Basrah Medium to a Greek refiner— likely to capture profits. Analysts said Reliance, which supplies 28% of its exports to Europe, is leveraging its flexibility to redirect trade flows amid shifting sanctions and freight dynamics.

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Petrobras Boosts Buzios Output to 1 Million Barrels a Day, Deepening Global Oil Glut

Brazil’s state-run oil giant Petrobras has ramped up production at its Buzios deep-water field to 1 million bpd, three months ahead of schedule, strengthening its dividend payout of $2.3 billion despite oil prices hovering near five-year lows. The Almirante Tamandare FPSO alone reached 270,000 bpd, surpassing its target and pushing Petrobras’s quarterly net income to $6 billion. Petrobras and Chinese partners had paid a record 68 billion reais ($13 billion) signing bonus for Buzios in 2019, now its key growth driver. The company’s surge in exports comes as global oil futures have fallen 15% this year, with traders warning of a potential 2 million bpd oversupply in 2026. With plans for a 12th FPSO to expand Buzios toward 2 million bpd capacity, Petrobras faces pressure to secure new discoveries as production is expected to decline by the end of the decade.

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Suspected Pirates Seize Oil Tanker Near Somalia in Escalating Indian Ocean Attacks

An oil tanker, Hellas Aphrodite, was boarded by suspected pirates about 700 miles east of Mogadishu, marking the most serious piracy incident in the Indian Ocean in recent months. The vessel, carrying gasoline from India to South Africa, was attacked by assailants operating from a nearby mothership, according to Ambrey Intelligence. Ship manager Latsco Marine Management confirmed the security breach and said it has activated its emergency response team to protect the crew. Security firms reported that the tanker had no armed guards on board at the time of the attack. The incident follows a hijacking of an Iranian-flagged dhow last week, signaling a potential resurgence of Somali piracy after years of relative calm.

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Performance Shipping Secures $78 Million Suezmax Deal with Repsol

Performance Shipping has signed its first suezmax charters with Spain’s Repsol, locking in three-year contracts at $36,500 per day for the 157,300-dwt Eco Bel Air and Eco Beverly Hills (both built 2019). The agreement adds $78 million to the company’s revenue backlog, which now totals $335 million across 12 vessels, including aframaxes, LR2s, and suezmaxes. Earlier this week, Performance also secured a $21.4 million long-term charter with ExxonMobil for its LR2 vessel P Long Beach. CEO said proceeds from the Repsol charters will cover over half of the $150.88 million used to acquire the two suezmaxes. The deal reflects strong market fundamentals, with three-year charter rates for modern suezmaxes at their highest level in nearly 11 months, according to Clarksons.

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EU Launches $3.3 Billion Green Fuel Plan After IMO Climate Setback

Following the International Maritime Organization’s failure to adopt its Net-Zero Framework, the European Union unveiled a €2.9 billion ($3.3 billion) Sustainable Transport Investment Plan (STIP) to accelerate the use of renewable and low-carbon fuels. The plan aims to narrow the price gap between conventional and green fuels, which are currently two to ten times more expensive, by leveraging public funds to attract private investment. Despite being well below the €100 billion needed by 2035 to meet EU fuel goals, the initiative was welcomed by the European Community Shipowners’ Association (ECSA) as a “good first step.” The STIP will use existing instruments like InvestEU, the Innovation Fund, and Horizon Europe, including a €500 million double-auction in 2026 to support large-scale projects. Additionally, the EU plans to simplify reporting rules, introduce carbon price flexibility, and maintain its 2040 target of a 90% emissions reduction from 1990 levels.