West Texas Intermediate oil fell below $55 a barrel for the first time since February 2021 on signs that supply is outpacing demand, while progress in Ukraine peace talks could lead to a deal that may allow more Russian oil to flow onto global markets. US crude futures pared some losses, settling down 2.7% to $55.27. Brent, the global benchmark, fell 2.7% to settle at $58.92. Signs of weakness are proliferating across the supply side of the oil market, with Middle Eastern crude prices entering a bearish pattern known as contango early on Tuesday. The same already had happened with some barrels sold on the US Gulf Coast, with near-dated prices cheaper than contracts for delivery further out. On the WTI futures curve, the front-month contract was trading as little as 9 cents higher than the following month. The demand side looks similarly fragile. Elevated premiums for fuels like gasoline and diesel relative to crude, which supported prices last month, have eased. Meanwhile, weak job growth in the US signaled a potential slowdown in demand, adding further downward price pressure. While markets have been in a period of oversupply, a steady stream of geopolitical risks, and the fact that significant oil supply has gone to stockpiles at sea or in China, has kept markets tight, said Rory Johnston, oil market researcher and founder of Commodity Context. “The market has been trending this way,” Johnston said. “It’s been wanting to sell off, flip into contango for six months now, but it just keeps being delayed from doing so.” Trend-following commodity advisers remained 100% short in both Brent and WTI on Tuesday, according to data from Bridgeton Research Group. Widespread short positioning means that bullish news could push markets higher as automated traders cover positions, Johnston said. “My base case expectation is

WASHINGTON – U.S. Secretary of Energy Chris Wright today signed an amendment order granting an additional 44 months for Woodside Energy to commence exports of liquefied natural gas (LNG) to non-free trade agreement (non-FTA) countries from the Woodside Louisiana LNG Project under construction in Calcasieu Parish, LA. 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.    Woodside Louisiana took final investment decision on its first phase earlier this year and has off-take agreements with Germany’s Uniper as well as U.S. pipeline operator Williams who will be marketing natural gas through the Woodside Louisiana LNG project.  “It is exciting to take this action to provide the needed runway for this project to fully take off and realize its potential in providing reliable and secure energy to the world,” said Kyle Haustveit, Assistant Secretary of the Office of Hydrocarbons and Geothermal Energy. “Thanks to President Trump’s leadership, the Department of Energy is redefining what it means to unleash American energy to strengthen energy reliability and affordability for American families, businesses, and our allies.” The United States is the largest global producer and exporter of natural gas. There are currently eight large-scale LNG projects operating in the United States and several additional projects are expanding or under construction. Under President Trump’s leadership, the Department has approved applications from projects authorized to export more than 17.7 Bcf/d of natural gas as LNG, an increase of approximately 25% from 2024 levels. So far in 2025, over 8 Bcf/d of U.S. LNG export capacity, including from Woodside Louisiana LNG, has reached a final investment decision and gone under construction.

Russian crude prices are at their lowest since the war in Ukraine began, as sanctions deepen the discounts the nation’s oil industry needs to offer and benchmark futures tumble.  On average, Russian oil exporters are receiving just over $40 a barrel for cargoes shipped from the Baltic, Black Sea and the eastern port of Kozmino, according to data from Argus Media. That’s down 28% over the last three months, with recent restrictions targeting oil giants Rosneft PJSC and Lukoil PJSC widening the markdowns.  Mounting Western pressure on Russia’s oil trade has made it increasingly difficult to sell and deliver the barrels, with measures also targeting refiners at top buyers like India. In addition, global benchmark oil prices are sliding, trading below $60 a barrel for the first time since May on Tuesday.  The revenues Russia receives for its oil — which combined with gas account or about a quarter of the nation’s state budget — are critical to fund its war. Lower income strains the finances of the nation’s oil companies and reduces the amount of tax they pay into the Kremlin’s coffers.  The Trump administration has engaged in a diplomatic flurry geared toward ending the conflict over the last few weeks. President Vladimir Putin acknowledged that Russian economic growth was slowing down on a recent visit to India.  Indian officials said they expect imports from Russia to be about 800,000 barrels a day this month, sharply lower than in November, though still a significant volume of supplies. A Chinese refiner recently bought a shipment of crude from Russia’s eastern ports at the steepest discount this year. The two Asian nations are the main buyers of Russian oil.  WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate

In its latest short term energy outlook (STEO), which was released on December 9, the U.S. Energy Information Administration (EIA) again raised its West Texas Intermediate (WTI) price forecast for both 2025 and 2026. According to this STEO, the EIA now expects the WTI spot price to average $65.32 per barrel in 2025 and $51.42 per barrel in 2026. The EIA’s December STEO marks the latest in a line of STEOs with average WTI spot price forecast increases for both 2025 and 2026. In its previous November STEO, the EIA projected that the WTI spot price would average $65.15 per barrel in 2025 and $51.26 per barrel in 2026. The EIA’s October STEO projected that the WTI spot price would average $65.00 per barrel this year and $48.50 per barrel next year, and its September STEO forecast that the WTI spot price would average $64.16 per barrel in 2025 and $47.77 per barrel in 2026. Although the September STEO included an increase in the average WTI spot price forecast for 2025, compared to the previous August STEO, the average WTI spot price forecast for 2026 was unchanged from the previous STEO. A quarterly breakdown included in the EIA’s December STEO projected that the WTI spot price will average $59.31 per barrel in the fourth quarter of 2025, $50.93 per barrel in the first quarter of 2026, $50.68 per barrel in the second quarter, and $52.00 per barrel across the third and fourth quarters of next year. The WTI spot price averaged $71.85 per barrel in the first quarter, $64.63 per barrel in the second quarter, and $65.78 per barrel in the third quarter, the December STEO showed. It highlighted that the WTI spot price averaged $76.60 per barrel overall in 2024. In a J.P. Morgan report sent to Rigzone by

Chevron Corp, lowered the price of Venezuelan crude offered to US refiners after a tanker was seized by American forces in the Caribbean and as global prices drifted lower.  The oil supermajor sold a batch of Venezuelan oil on Dec. 11 — a day after US forces seized a vessel off the country’s coast — at weaker prices compared than a batch offered on Monday, according to people with knowledge of the situation.  The administration of President Donald Trump is stepping up pressure on Venezuela by targeting oil revenues critical to the survival of Nicolas Maduro regime. The seized vessel, the Skipper, is currently near the Dominican Republic and appeared to be en route to the US, according to vessel movements tracked by Bloomberg. While it’s unclear when the ship will be able to discharge, it’s expected arrival is pressuring already weak prices in the Gulf Coast market, the people said, asking not to be named because the information is private.  Chevron’s operations in Venezuela continue in full compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the US government, the Houston-based company said in a statement.  The company sold about 10 oil cargoes of different grades for loading next month, in a sign that it’s pressing ahead despite heightened tensions between the two countries. The cargoes were sold in two separate tenders and price levels were not immediately available.  WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Phillips 66 said Monday it expects a $2.4 billion budget for next year, consisting of $1.1 billion in sustaining capital and $1.3 billion in growth capital. “The 2026 capital budget reflects our ongoing commitment to capital discipline and maximizing shareholder returns”, chair and chief executive Mark Lashier said in an online statement. “We are investing growth capital in our NGL value chain and high-return refining projects, while also investing sustaining capital to support safe and reliable operations”. Houston, Texas-based Phillips 66 expects to shell out $1.1 billion into its refining business, comprising $590 million in sustaining capital and $520 million into growth projects. “With the consolidation of WRB Refining, we incorporated approximately $200 million of sustaining capital and $100 million of growth capital into the budget”, Lashier said. Phillips 66 recently acquired an additional 50 percent stake in WRB Refining LP from Cenovus Energy Inc for $1.4 billion, fully taking over the Wood River and Borger refineries, as confirmed by Phillips 66 in its third quarter report October 29. Wood River in Roxana, Illinois, has a gasoline and distillates production capacity of 176,000 bpd and 140,000 bpd respectively. Borger in Borger, Texas, produces up to 100,000 bpd of gasoline and 70,000 bpd of distillates, according to Phillips 66. The refining allotment for 2026 also includes a multiyear investment at the Humber refinery to enable the production of higher-quality gasoline and expand the facility’s access to “higher-value global markets”, the company said. Phillips 66 expects to start up the project in the second quarter of 2027. Located in North Lincolnshire on the English east coast, the Humber site produces up to 95,000 barrels per day (bpd) of gasoline and 115,000 bpd of distillates, according to Phillips 66. The refining budget also includes “over 100 low-capital, high-return projects to improve market capture