SunSirs: Energy Industries Bulk Commodity Intelligence (December 11, 2025)

Macroeconomics

1. Fed Rate Cut: Early Thursday morning Beijing time, the Federal Reserve announced a 25 basis point rate cut as expected, lowering the target range for the federal funds rate to 3.50%-3.75%. This is the Fed's third rate cut this year in 2025, bringing the total cuts to 75 basis points.

2. UAE ​​Rate Cut: The Central Bank of the United Arab Emirates announced a 25 basis point cut to its benchmark interest rate, bringing it to 3.65%.

3. Canadian Interest Rates: On Wednesday, at its final monetary policy meeting of 2025, the Bank of Canada maintained its benchmark interest rate at 2.25%, as expected.

4. Brazilian Interest Rates: The Central Bank of Brazil's Monetary Policy Committee decided on the evening of December 10th to maintain the country's benchmark interest rate at 15% per annum, in line with previous market expectations.

Energy

1. [Crude Oil] On December 10th, international crude oil futures closed higher. The settlement price of the January contract for US WTI crude oil futures was $58.46 per barrel, up $0.21 or 0.4%. Brent crude oil futures for February delivery settled at $62.21 per barrel, up $0.27 or 0.4%.

2. [Crude Oil] On Wednesday, the U.S. Energy Information Administration (EIA) inventory report showed that U.S. crude oil inventories declined last week, while gasoline and distillate fuel inventories increased, mainly due to strong refining activity. Data showed that for the week ending December 5, U.S. crude oil inventories decreased by 1.812 million barrels to 425.691 million barrels, compared to analysts' expectations of a 2.3 million barrel decrease. Gasoline inventories increased by 6.397 million barrels to 220.819 million barrels, compared to analysts' expectations of an increase of approximately 2.8 million barrels. Distillate fuel inventories, including diesel and heating oil, increased by 2.502 million barrels to 116.788 million barrels, compared to analysts' expectations of an increase of approximately 1.9 million barrels.

3. [Crude Oil] The U.S. government announced on Wednesday that it would extend the deadline for negotiations to acquire the global assets of Russian oil company Lukoil until January 17 next year. On October 22, in order to pressure the Russian government over the Russia-Ukraine conflict, Trump imposed sanctions on Russia's two major energy giants, Lukoil and Rosneft.

4. [Crude Oil] On December 10, a major oil spill was reported in the Uckermark region of northeastern Germany, caused by a pipeline malfunction at the PCK Schwedt refinery. There are currently no reports of injuries or disruption to refinery operations.

5. [Crude Oil] Data released by the Fujairah Oil Industrial Zone (FOIZ) shows that as of the week ending December 8, total refined product inventories at the port of Fujairah in the UAE reached 23.512 million barrels. Refined product inventories increased for the third consecutive week, with a net increase of 476,000 barrels, or 2.1%, compared to the previous week.

6. [Coal] According to reports, the South Korean government is pushing for accelerated business restructuring of its five major coal-dependent power companies (Namdong, Namdong, Jungbu, Seobu, and Dongseo Power) to achieve its plan to completely shut down coal-fired power plants by 2040 and meet its 2035 national greenhouse gas emission reduction target (a reduction of 68.8% to 75.3% compared to 2018).

7. [Coal] On December 9th, the completion and commissioning ceremony of the 5 million tons/year coal mine of Huayang Group's Qiyuan Company was held, marking the company's official transition from a construction mine to a production mine. The mine has designed recoverable reserves of 1.033 billion tons, a designed production capacity of 5 million tons/year, and a service life of nearly 140 years. It primarily mines No. 8 and No. 15 coal, and is equipped with a dedicated railway line and coal preparation plant.

8. [Coke] Major steel mills in Tangshan and Xingtai plan to lower the price of wet-quenched coke by 50 RMB/ton and dry-quenched coke by 55 RMB/ton, effective from midnight on December 12, 2025.

9. [Coking Coal] On December 10, coking coal prices in Yaodu District, Linfen, decreased. High-sulfur prime coking coal (A11, S3.7, G92) with a starting price of 1090 RMB/ton for 60,000 tons was listed, with an average transaction price of 1102 RMB/ton, down 73 RMB/ton from the previous three days. Low-sulfur lean coal (A10, S0.6, G50) with a starting price of 1,130 RMB/ton for 35,000 tons was listed, with 25,000 tons sold at the reserve price, down 20 RMB/ton from the previous three days.

10. [Petroleum Coke] On December 10th, Qirun Petrochemical quoted petroleum coke at 1,680 RMB/ton, down 50 RMB/ton from the previous trading day, with a sulfur content of 4.3%. The delayed coking unit has a capacity of 1.6 million tons/year and a daily output of 700 tons.

11. [Shale Oil] As of December 8th, Jianghan Oilfield's Fuxing Oilfield projected 29,000 tons of shale oil production by 2025, representing year-on-year growth. To date, Fuxing Oilfield's cumulative shale oil production is nearly 90,000 tons, and six new wells, including the Xingye L1006HF well, have been put into operation immediately after testing.

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