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EIA reports that U.S. crude imports dropped last week, reaching their lowest level since February 2021.
The Energy Information Administration reported that the U.S. imported its lowest amount of crude oil in five years last week, as companies sought to avoid a heavy tax at the end of the year on oil stored in storage. According to EIA, U.S. crude imports fell last week to 4,95 million barrels a day. This is the lowest level since February 2021. John Kilduff, partner at Again Capital, explained that the?ad value tax was a burden on crude oil imports. Kilduff stated that "companies" will delay taking inventory of crude oil and refined products when they reach this point, especially in December. EIA data revealed that the U.S. crude inventory has increased due to lower imports, and robust refining activities. EIA data shows that oil imports from Mexico dropped to 71,000 bpd during the week ending December 26, the lowest ever recorded. This was lower than the previous all-time high for U.S. crude imports from Mexico, which reached 131,000 bpd during the week ending Nov. 28th 2025. The Mexican state oil company, Pemex, must maintain its production at 1.6 million barrels per day (bpd) of crude oil and condensate. This is a sharp drop from the 3.4 millions bpd that it produced 20 years ago. Reporting by Arathy S. Somasekhar in Houston and Georgina M. McCartney; editing by Chizu N. Nomiyama
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Critical Metals CEO expects Greenland deals to be closed in Q1 of 2026.
Critical Metals' top boss said that the company expects to complete the remaining 25% of "offtake agreements" for its Tanbreez project in Greenland by early 2026. It will also be open to investment from Washington. Tony Sage, CEO of Rare Earths, said that the Middle East's interest, which includes potential partners in Saudi Arabia and other energy-rich countries such as Bahrain, Oman, Qatar and Saudi Arabia, is a reflection of the efforts made by states with high energy costs to develop a processing capacity for rare earths, supported by lower electricity costs and quicker permits than the U.S. And Europe. Sage says that the company has pre-sold 75 percent of its planned production, divided between Europe and the U.S., in order to diversify supply to reduce geopolitical risks. Trump's administration is intensifying efforts to secure U.S. mineral supply chains, and has shifted some federal funding from grants to direct equity stakes. Washington wants to reduce its reliance on the market leader China. Trump stated last week that Greenland is vital to U.S. national security, and that an envoy that he appointed for the island will "lead" the charge. Four people with knowledge of the matter said in October that Trump administration officials had discussed taking a stake on Critical Metals. We would welcome it even though we did not ask for it. Sage stated that they had asked for a grant through the Defence Production Act. The report said that the Trump administration had considered converting this grant into equity if it were to be awarded. The White House has not responded to a request for comment. Sage stated that Critical Metals will begin mining in 2027 and first production is expected to start by mid-2028. Greenland's capital costs will likely total $500 million, while downstream processing facilities could cost up to $1 billion. Sage also said that the Austrian project for lithium remained on hold until the price of the battery metal recovered. Arunima Kumra in Mumbai, Ernest Scheyder for additional reporting; Veronica Brown and Anil d'Silva for editing.
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The blue-chip FTSE100 stalls at a record high and seals the strongest annual run since 16 years
The UK's FTSE 100 Index paused at record levels on Thursday in the final stretch to 2025, wrapping up its biggest annual gain in sixteen years in a shortened session. The blue-chip FTSE 100 closed 0.2% lower than the previous day, when it had reached a new record. The domestically-focused FTSE 250 midcaps index?declined 0.4%. Markets closed early on January 1 to avoid the New Year's holiday. The FTSE 100, Britain's blue chip index, outperformed major global markets by 2025. This was boosted?by the expectation of more Bank of England rate reductions, its strength in financials,?miners, and its appeal as a relatively inexpensive diversifier during periods of global volatility. The index increased by more than 21% in the past year. This is its best performance since 2009 and a fifth consecutive annual gain. Comparatively, the pan-European STOXX 600 rose 16.6% while the U.S. S&P 500 gained 17.2%. In a close vote earlier in December, the BoE announced its fourth 25 basis-point reduction of the year, and indicated that the pace of easing, which was already slow, could be slowed further. Resources-heavy FTSE 100 gained support from mining companies Fresnillo and Endeavour?Mining, as well as Antofagasta, who benefited from surging prices for gold, silver, and copper this year. Diageo, the world's leading spirits producer, and Bunzl, the largest business supplies distributor, both fell by around 37%. Other record highs were out of reach. The midcap index rose 9% in 2025, but remained almost 8% below the peak of 2021. Meanwhile, the FTSE Small Cap Index rose 10% and closed just 1.5% shy of its 2021 record.
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Copper prices fall at the end of the year after 2025's record high.
The dollar strengthened on Wednesday, and some investors took advantage of thin liquidity to profit. A year-end rally had pushed the metal up to a new record this week. It was now on track for its largest annual gain in sixteen years. The benchmark three-month copper price on the London Metal Exchange fell 1% by 1055 GMT to $12,425 per metric ton, after hitting a record high of $12,960 Monday. "We have seen a reaction in the last few days to what happened on 2025. The dollar has strengthened after?this years weakness, and copper is retreating from its recent highs," stated Dan Smith, managing Director at Commodity Market Analytics. Copper, which is used for power and construction, jumped 42% this year as mine disruptions fueled concerns over a tightening supply. The rally was also driven by a weaker dollar, which makes dollar-denominated goods cheaper for holders of foreign currencies. Speculators who anticipated a surge in demand due to the AI boom and the energy transition bought commodities. SHORT-TERM SESSIONAL SUPPORT Smith stated that seasonality would provide short-term support to copper in the physical market. The first quarter is usually supportive of the industrial cycle, with stock builds ups before summer. The demand for metals in China, which is the world's largest metal consumer, continues to be higher than expected. He added that imports between January and November are only down 3% on a year-on-year basis. Yangshan Copper Premium The price of copper in China, which is a measure of Chinese demand for imported copper, has ended the year at $51 per ton after reaching a three-month peak of $55 last weekend. The outlook for copper in the year 2026 is dependent on the policies of U.S. president Donald Trump, as U.S. Tariffs are driving the CME Premium to the LME. The premium on the metal has led to a tightening of availability in traditional consumption centres. "I anticipate that the inflows will continue in the short term. Smith stated that he does not expect a sudden reversal of these flows, since they are largely driven by arbitrage, and still subject to U.S. policies, which can be difficult to predict. Other LME metals saw aluminium rise 0.2% to $ 2,984.50 per ton. Zinc fell 0.8% at $3,099.50. Lead gained 0.4% at $2,018.50. Tin dropped 2.0% to $41,140. Nickel lost 0.6% at $16,715.
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The London blue-chip FTSE 100 is on course to end the strongest year since 16
The UK's FTSE 100 Index paused at record levels on Thursday in the final stretch to 2025, hoping to close out its biggest annual gain in sixteen years in a shortened session. Blue-chip FTSE 100 remained flat at 0902 GMT, after having closed on a record high a day earlier. The midcap index, which is primarily focused on the domestic market, fell 0.3%. The trading activity was low, with the markets expected to close at half-past noon on January 1, ahead of New Year's Day. After years of underperformance the blue-chip FTSE 100 will 'outpace major global markets? in 2025. This is due to expectations of more Bank of England rate reductions, strength in financials, miners, and its appeal as a cheap diversifier in times of global volatility. The index has risen by more than 21% in the past year. It is on track to achieve its best performance since 2009, and a fifth consecutive annual gain. Comparatively, the pan-European STOXX 600 rose 16.6% while the U.S. S&P 500 gained 17.2%. In a vote that was narrowly won, the BoE announced its fourth 25-basis point cut of the year, and signaled the pace of easing, which had already been gradual, could slow down further. The FTSE 100, which is a resource-heavy index, benefited from the'surging gold, copper and silver prices in this year. Bunzl, Diageo, and other business supplies distributors fell by around 37%, making them the index's worst laggards. (Reporting and editing by Nivedita Battacharjee in Bengaluru.)
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Iron ore gains in an annual recovery fueled by steel exports
Iron ore futures were traded in a narrow band on Wednesday but defied fears of a decline in the first quarter of 2025 on?the back of resilient demand from China, a top consumer of iron ore. The May contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.57% lower, at 789.5 Yuan ($112.97) per metric ton. However, it posted an annual increase of 1.3%. As of 0736 GMT the benchmark February iron ore traded on?the Singapore Exchange had risen 0.2% to $105.55 per ton. This represents a 5.1% annual gain. Prices for the main steelmaking ingredient were under pressure earlier this year due to expectations of a glut of supply and forecasts that demand would be weakened in China. Iron ore prices are still supported by China's consumption, even though the?crude-steel output is expected to drop below 1 billion tonnes this year. Cost competitiveness of blast furnace-based steelmaking kept operating rates high, boosting iron ore demand, although the cleaner electric-arc-furnace-based steelmakers had to scale down output when margins were squeezed by dwindling local demand and resilient ore prices. Steel exports are expected to reach a record in 2025, despite the increasing protectionist measures around the world. This will offset sagging Chinese property demand. Ore prices will be supported in the short term by a rush of steelmakers restocking ahead of the Lunar New Year holidays in February. The upside potential will be limited by a combination of sluggish demand for steel and rising?portside stocks. On Wednesday, the DCE showed mixed results for other steelmaking components. Coking coal was up 0.45% while?coke was down 1.25%. The benchmarks for steel on the Shanghai Futures Exchange have been moving sideways. Rebar fell by 0.48%. Hot-rolled coils dropped 0.52%. Wire rods gained 5.66%. Stainless steel firmed up 0.57%. $1 = 6.9883 Chinese Yuan (Reporting and editing by Sonia Cheema, Subhranshu Sahu and Ruth Chai)
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Sources say that China has set import quotas on naphtha for 2026.
Three trade sources said that China had allocated naphtha import allowances to the 'key importers' in the first batch for 2026. The volumes should remain essentially the same from this year onwards. According to two people, the state-owned Sinopec (22,4 million barrels) as well as CNOOC (2.11 million metric tonnes) were each allocated 2.52 million metrictons. One of the sources said that Ningbo Zhongjin Petrochemical owned by Rongsheng Petrochemical was allocated 750,000 tons. Sources declined to name themselves as they were not authorized to speak in public. Requests for comments from the Ministry of Commerce, Sinopec CNOOC, and Rongsheng Petrochemical were not immediately answered. Beijing controls the imports of naphtha (as a feedstock important for petrochemical production) via a quota-based system similar to that used in its crude and refined product exports. Sources said that Exxon Mobil, BASF and other foreign cracker companies would also receive significant quantities in the first batch. However, the exact volumes are not yet known. BASF announced on November 5 that it is in the process to start up its new 1 million-ton per annum?crackers and derivatives units in Zhanjiang in southern Guangdong Province. China imported 15.44 million tons in the first 11 months of this year. The 2025 quota is about 24 million tons. The 2025 quota had not been fully used. One of the sources stated that Beijing will release the second batch 2026 import quotas for naphtha in the middle next year. (Reporting and editing by Florence Tan, Thomas Derpinghaus and Siyi Liu; Reporting by Trixie YAP, Siyi Liu, and Sam Li)
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Copper to have biggest annual increase in 16 years and be the best performing base metal
The copper price was on track to make its largest annual gain since 2009. This makes it the best performing base metal. Supply concerns and the?prospects for surging demand due to the AI boom and the energy transition fueled a blistering rise. Red metal is a material that's widely used in construction and power sectors. It's gaining a lot of?investor? interest due to its role in energy transformation technologies, and the expanding infrastructure for artificial Intelligence and data centres. The benchmark three-month price of copper on the London Metal Exchange dipped by 0.49% at $12,497 a metric ton as of 0700 GMT. However, the LME was still set to finish the year with more than a 42% increase. The Shanghai Futures Exchange's most traded copper contract ended the day with a gain of 0.84%, or $14,057.78 per ton. This is a 33.27% increase this year. The rally in copper was fueled by mine?disruptions such as the suspension of Freeport’s flagship Grasberg Mine in Indonesia. The London benchmark hit a new record high of $12960 this week. Meanwhile, the Shanghai contract reached a new record of 10,2660 Yuan last week. As a result of the CME premium over the LME, which is largely driven by U.S. Tariffs, LME inventories have been depleted and copper stocks have been shifted to COMEX sheds. Copper stocks in COMEX warehouses According to the Tuesday exchange, the number of tons traded has risen to an all-time high, 490,722 tonnes, a 426.75% increase so far this year. The LME reported on warrant copper Volume at 149 475 tons, a decline of 44,91% on Monday. Supply concerns were also raised by China's plan for regulating its ever-expanding capacity to smelt copper and the top Chinese smelters plan to reduce output in 2026. Tin was on track to be the second biggest gainer among base metals. Benchmark LME three-month tin fell by 1.67% but was expected to end the year in a nearly 42% increase. Shanghai's most active tin posted a daily decline of 0.45% but ended the year with a gain of 30.42%. Tin gained as a result of supply disruptions from?Myanmar & Indonesia, which tightened flow into China's top consumer. Aluminium also won in 2025 due to China's cap on smelting. The London benchmark rose 0.44% and was on track for an annual gain of more than 17%, while the Shanghai contract ended the day up 2.25, bringing the year to a 14.65% increase. Nickel is also expected to have its first annual gain since 2023 as the Indonesian Government's plan of reducing 2026 mining quotas to support prices fueled a dramatic rally. London nickel fell 1.35% to $16,600 per ton on Wednesday, but is still on track to finish the year with a gain of more than 8%. Shanghai nickel closed the daytime trade up 2.44%, at 132.850 yuan per ton. This represents a 4.93% annual gain. Zinc fell 0.24%, while lead rose 0.22%. Lead fell 0.66% and zinc 0.06% among the SHFE base metals.
As oil prices rise to $60, Permian's resilience is tested.
Oil production in Texas is on the rise. Mark Waters owns a shop that sells safety and tools to oil companies.
In the past four to six month, Tie Specialties in Odessa in Texas has seen a drop of 25% in sales in the oilfield. Shelves are filled with power tools, wrenches and augers to dig holes. Pegboards display hard hats and gloves as well as various colors of overalls.
This is my sixth boom and bust. I've seen it all. Waters, 65, said, "I'd call it slowdown but everyone I've spoken to says that the future for the next two years is not bright." The full impact of this downturn has not yet been felt by the U.S. Oil output. Interviews with 10 producers, services companies, and residents in the Permian basin show that Waters, and other people who live and work around oilfields, are having a harder time making a profit. Crude is hovering around $60 per barrel and this indicates that the economy will be worsened.
The biggest U.S. Oilfield has survived previous downturns. But President Donald Trump's policy has added to the slide of per-barrel profits of U.S. Producers. This was already stifled due to rising production from producer group Organization of the Petroleum Exporting Countries (OPEC) and its allies as well as the largest wave of consolidation since a century.
Cracks are starting to show
Local business owners are noticing a decline in footfall and sales.
Waters now hopes to counter the loss of oilfield services by relying on demand for electrical products from the data center boom. Waters also runs a generator-repair business that is experiencing a boom in business due to companies avoiding spending on new equipment. Midland's skyline is beginning to show signs of the recession, with idle 100-foot rigs lining stockyards. Equipment is being liquidated by service firms. Leading producers such as ConocoPhillips and Chevron have laid off employees. The latest U.S. Bureau of Labor Statistics data showed that oil and gas production jobs nationwide have dropped by 4,000 between January and July of this year. Approximately 370,000 Texans were employed in oil and natural gas production at the beginning of this year.
The U.S. produced a record number of barrels per day this month.
The improvements in technology and efficiency have allowed producers to squeeze more oil from fewer wells. As a result, some analysts predict that output will drop this year or the next due to spending cuts. In the next two years, any growth in output will come more from offshore deepwater fields than the shale patches.
Data from Enverus, an energy analytics company, showed that the Permian Rig Count, which is a proxy of future production, fell by 52 to 252 in October from the previous year. This was the biggest decline since 2020 when COVID-19 reduced demand.
We've been in contact with the administration to let them know that investment returns are becoming more difficult when oil prices are between $50 and $60. Denzil WEST, CEO of Admiral Permian Resources (which produces around 25,000 bpd) said that this will eventually lead to the current production levels becoming unsustainable.
The Economics of Drilling are 'Upside Down'
Oil companies are now facing higher production costs due to inflation and Trump's tariffs. They will need to charge even more for their oil than in previous cycles.
Kirk Edwards of Texas-based Latigo Petroleum said that drilling and finishing a shale oil well cost between $10 million and $12 million. This is 5% to 10% more than the previous year.
"The economics have completely flipped from what they were in January." Edwards stated that drilling a well is more expensive and that you are getting 20% less oil for it. Executives said that companies need oil at around $70 a barrel to maintain and increase production. However, for more than half of the days since Trump was elected, prices have been below $65 a barrel as OPEC, its allies and demand concerns continue. The U.S. Energy Information Administration forecast that West Texas Intermediate crude oil, which is the U.S. benchmark for pricing Permian Basin Oil, will average $51.26 by 2026.
Surge Energy, a major private producer in the Midland Basin, plans to continue drilling at the current price, but will do so at a slower pace, according to CEO Linhua Guan. The company has operated three rigs in the Midland basin since 2021. In July, it dropped one, reducing capex by a high single-digit percentage. The Permian oilfield, the biggest in the United States and the engine for shale production in the US, is becoming harder to gain efficiency. The area with the best economics for drilling is shrinking, forcing producers to more expensive areas.
"Investment returns are lower at $60 to $55 per barrel than they were five years ago, because the best wells had been drilled," said Admiral Permian West.
The company will assess the drilling required, but may defer completion of the wells in the event that prices fall below $50. West stated that the return of investor equity would be the priority, over increasing capital deployment.
"MORE RIGS than Work"
Oilfield services are also feeling the pain. Superior Energy Auctioneers sold equipment last month from Cleveland Lease Services contract well service division, and Lone Star Directional Drilling.
A person with knowledge of the auction stated that large trucks used for hauling fracking equipment and trailers sold at a 30% lower price in August than they did in April.
Terrel Hardin is the president of King Well Service which provides workover rigs to maintain existing production. He said that this year only two to three rigs of his company were being used, as opposed to four or five last year.
Hardin stated that "these prices don't cover the bills and everyone pulls back." SLB, a leading service provider in North America, said in October that it did not expect drilling to pick up in the near future. Halliburton, a rival company, said it would idle its equipment to cut costs. Both companies laid off employees this year.
Unemployment in the area is increasing.
According to the U.S. Bureau of Labor Statistics (BLS), Midland's unemployment rate increased by 0.5 percentage point to 3.6% in august. This was a level that the industry last reached in mid-2022, when it was recovering from a demand shock caused by the COVID-19 Pandemic.
Waters, from Tie Specialties, said that "we get people coming in everyday looking for work."
Local economies and small businesses are also feeling the effects of job losses.
D.S. Fabela's Restaurant in Odessa, which is frequented by oilfield employees, is thinning out as workers are laid off, according to manager Dulce Solis.
Yogashri Pradhan, who was laid off for the third time from her industry, decided to start IronLady Energy Advisors as a consultancy on reservoir engineering and production data.
"We are seeing more panic over $60 oil and I believe that a large part of this is due to the rhetoric and administration of, oh we could do it cheaper," said Pradhan who was laid off from Chevron in the month of June.
(source: Reuters)