We Can Work It Out! The Energy Report 12/08/2025

Try to see it my way, Do I have to keep on talking till I can’t go on? While you see it your way,

We run the risk of knowing that our love may soon be gone. We can work it out.

We can work it out. Trump saw we can work it out. That’s right with Canada! Oil is feeling the pressure as a trade deal would keep the risks of tariffs on Canadian oil.

U.S. President Donald Trump was asked yesterday while speaking to reporters outside the Kennedy Center Honors gala in Washington, whether he would resume trade talks with Canada which he had halted earlier in the year. He responded non-commitaly at first with phrases like “we’ll see,” but then added optimistically: “We’ll work it out.” He described a recent meeting with Canadian Prime Minister Mark Carney (and Mexico’s leader) as “very good, very productive,” and emphasized having a strong relationship with both Canada and Carney, despite calling Canadians “very tough traders” and noting that Canada produces many goods the U.S. already makes. Trump also made a light-hearted remark praising Canada’s ice hockey prowess.

This comes amid ongoing U.S.-Canada trade tensions in 2025, including earlier tariff disputes and suspended negotiations originally triggered by an Ontario ad criticizing tariffs. Trump’s comments suggest a willingness to resolve issues without immediate escalation, though no firm commitment to restart formal talks was made. Think of what you’re saying. You can get it wrong and still you think that it’s alright. We can work it out.

At the same time demand from China is improving. According to data released by the General Administration of Customs on Monday, China’s crude oil imports climbed by 4.88% year-over-year in November, with daily import volumes reaching their highest point since August 2023. Compared to October, imports increased by 5.24%, totaling 50.89 million metric tons, or about 12.38 million barrels per day (bpd). Kpler data indicates that imports from Saudi Arabia and Iran rose compared to October, while shipments from Russia declined.

Bloomberg reports that the Trump Administration will announce a $12 billion farm aid package to help farmers affected by tariffs and falling crop prices. The package includes up to $11 billion in one-time payments through the Department of Agriculture’s Farmer Bridge Assistance program, responding to farmer frustration over slow Chinese purchases following recent tariff disputes.

Oil prices weakened somewhat this morning, largely due to rising temperatures and ongoing uncertainty about the peace talks between the United States, Russia, and Ukraine. President Trump expressed mild disappointment with Ukrainian President Volodymyr Zelensky, but the market appears less worried about further supply disruptions, as reports indicate that no Russian oil infrastructure was damaged over the weekend.

Natural gas prices dipped due to an anticipated short-term temperature rise, but predictions for later in the month remain very cold. Call Phil Flynn to learn more about getting involved at 888-264-5665. Fox Weather reports that temperatures are starting to return to normal this weekend after millions of Americans felt the brunt of the extreme chill on Friday before another blast of arctic air rolls through the Northern Tier of the U.S. in the early part of next week. Temperatures from the Midwest to the Interstate 95 corridor on Thursday and Friday were some of the lowest seen so far this season, with nearly 80 record-low temperatures set between the two days. Another round of frigid air is on the way, especially for Americans in the Great Lakes and Northeast starting Monday and lasting through Wednesday.

Fox Weather also reports that another quick-hitting winter storm is brewing over the mid-Atlantic, just a few days after places in Washington, D.C., Maryland and Virginia saw their first snow of the season, in what has been an active start to meteorological winter across the country. Snow and sleet are ongoing across southern Virginia and West Virginia and will spread over northern North Carolina through Monday, as a fast-moving storm system slides off the East Coast, taking advantage of arctic air in the region. In addition, sleet along the rain-snow line made for a slick Monday morning commute, particularly for drivers traveling on Interstates 26, 65, 77 and 81.  Some places, particularly in the western North Carolina mountains, were not cold enough for snow Monday morning, leading to cold rain and sleet, which can be more hazardous than snow for drivers. Meanwhile, snow will replace rain by midday across southern Virginia and northern North Carolina. People in Raleigh should expect at least a coating to an inch of snow, and those in Asheville will likely see some snow accumulation, with more snow farther north into the Blue Ridge Mountains.