🌍 Energy Market Update – What Farmers Need to Know
🛢️ OPEC+ Talks Market Stability and Supply
OPEC+ (the group of oil-producing countries, including Saudi Arabia and Russia) has been working to balance oil supply and prices. Since 2022, they’ve cut production to keep prices from falling too low. But starting this spring, they began slowly increasing oil output again, with larger boosts planned for May and June.
The UAE’s Energy Minister said OPEC+ is watching rising global oil demand, and warned that if oil companies don’t keep investing in new supply, we could see price shocks down the road. He also noted that keeping the oil market stable isn’t just OPEC’s job—it takes effort from countries and companies worldwide.
🇳🇴 Norway’s Oil Investment Hits a Record
Oil and gas investment in Norway is expected to reach an all-time high in 2025, climbing to over $26 billion USD. This comes as companies gear up to develop new oil fields near existing platforms. One company alone—Vaar Energi—plans up to 14 new projects.
However, analysts believe this surge may be short-lived, with spending expected to fall again in 2026. The outlook could still change as budgets are finalized later this year.
⛏️ U.S. & Canadian Rig Counts Slide
Here’s a quick look at oil rig activity—the number of drilling rigs in action is a good indicator of how active oil producers are:
-
In the U.S., rig counts dropped by 8 last week, bringing the total to 465. That’s 18 fewer than a month ago and 32 fewer than this time last year.
-
Canada also saw a drop of 3 rigs, down to 71 total, though they’re still up compared to last year.
The decline was spread across major U.S. regions like the Permian, Williston, and Eagle Ford basins. The slowdown is another sign that oil producers are cautious as prices remain unpredictable.
📈 Market Overview: Steady but Watching OPEC+
Oil prices stayed fairly steady this week. That’s partly because of easing trade tensions—President Trump has delayed tariffs on the European Union—and partly because the market is waiting for OPEC+’s next move.
At their next meeting, OPEC+ could approve a production increase of 411,000 barrels a day in July. At the same time, uncertainty around Iran’s nuclear program and Russia’s output plans are keeping traders cautious.
🛢️ Diesel Market Watch: Slow and Steady
After the long Memorial Day weekend, diesel prices have been quiet, hovering around $2.10 per gallon. That price is right near its 30-day moving average, which traders see as a key number. If prices close above it, it might be a sign of upward movement—but for now, things remain steady.
Diesel prices have been drifting lower ever since OPEC+ announced they’d raise production in June. With the chance of another increase in July, traders are playing it safe.
📞 Need help planning for summer fuel needs? Call your account manager for pricing, options, and insights.
1.800.342.7360
