The Aspar Aprilia rider has already taken two victories from two races so far this year, and was quickest in every practice session in Portugal this weekend.
Come qualifying it did not take Terol long to establish himself on provisional pole, with a final improvement on his last lap getting him to 1m46.556s - 0.7 seconds clear of the field.
Ultimately star rookie Oliveira lost out on second to Cortese, but held off Faubel to claim third and a maiden front-row start.
Oliveira's Alberto Moncayo took fifth, ahead of Johann Zarco, Luis Salom and Jonas Folger.
Young British rider Danny Kent had been second to Terol in the wet this morning but crashed at Turn 2 and ended up 23rd.
Countryman Taylor Mackenzie had a more violent crash at the same spot a few minutes earlier. After a few nervous moments as the pack dodged around his stranded bike, which had come to rest on the racing line, Mackenzie was able to limp away from the scene to get medical attention.