China's accelerated crude oil stockpiling in 2025 provides a significant buffer against global supply disruptions, particularly in the wake of U.S. sanctions on Russian oil firms, and has supported international oil prices.

Crude prices cap off four straight daily gains with a cumulative weekly loss of nearly a dollar. Near-month NYMEX crude ends the week Friday two pennies shy of $61 a barrel, then shied away even further on Monday. Brent crude in London drops under $65 a barrel as of Monday midday.

Downside risks to global oil prices remain despite oil producing countries under the Organisation of the Petroleum Exporting Countries together with non-members commonly known as Opec+ deciding to pause further production increases in the first quarter of 2026 (1Q26).

The total number of active drilling rigs for oil and gas in the United States fell this week, while weekly U.S. crude oil production rose to a new high of 13.644 million bpd.

China’s higher refinery processing rates have sharply reduced crude oil available for storage, shrinking its average surplus to the lowest level this year.

Russia-backed Indian refiner Nayara Energy has ramped up crude processing at its Vadinar refinery to 90% to 93% of capacity, two sources familiar with the matter said, after European Union sanctions curtailed operations earlier this year.

Big Oil leaders Exxon Mobil, Chevron, and Shell continue to hike their crude oil production volumes from West Texas’s Permian Basin to the Gulf of Mexico to deepwater Guyana despite concerns of a rising global oil glut as OPEC nations keep exporting more barrels each month.

The Odessa American is the leading source of local news, information, entertainment and sports for the Permian Basin.

OPEC+ managed to both meet market expectations and deliver a surprise by agreeing to a small rise in crude oil output for December, but then pausing for the first quarter of next year.

OPEC+'s decision to pause output hikes offers a temporary reprieve for the US shale industry, which faces significant challenges if oil prices fall to $50 per barrel.