🛢️ Today’s Market News – Fuel & Oil Update for the Upper Midwest
🇨🇳 China’s Oil Imports Slow in May
China brought in less crude oil in May—its lowest daily import rate in four months. What’s behind the dip?
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Refinery maintenance at both government-run and private facilities slowed operations.
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High oil prices made it less appealing to buy large amounts.
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Fewer shipments from Saudi Arabia and Iran also played a role.
Overall, China imported about 10.97 million barrels per day, down 3% from April. But this slowdown looks temporary—June imports are expected to bounce back, especially with more oil coming in from the Middle East and Brazil.
🇮🇳 India’s Fuel Demand Hits a New High
In contrast to China, India’s fuel demand soared in May—its highest level in over a year.
Here’s the breakdown:
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Gasoline use rose 9.2%
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Diesel demand climbed 2.1%
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Cooking gas (LPG) jumped 10.4%, showing strong home and business use
All of this points to a busy economy and high mobility, with lots of vehicle traffic, commercial activity, and cooking fuel usage. Even with rising fuel prices, domestic consumption in India remains strong.
⛏️ U.S. Oil Rig Count Falls Again
The number of active oil rigs in the U.S. dropped by 41 this week, down to 442 total. That’s the sixth straight week of declines and 50 fewer than this time last year.
In Canada, the rig count stayed at 69, but that’s still 20 lower than last year.
Despite fewer rigs in the field:
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U.S. oil production remains strong, averaging about 13.47 million barrels per day, just under March’s record.
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Meanwhile, OPEC+ is increasing its output again for July by 411,000 barrels/day—continuing its plan to gradually reverse previous cutbacks.
Bottom line: Drilling is slowing, but production levels are still holding firm—at least for now.
📉 Market Overview: Oil Prices Holding Steady
Oil prices are flat to start the week, but they’ve been stronger lately thanks to hopes for a U.S.–China trade agreement that could boost the global economy and energy demand.
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Weak Chinese economic data (slower exports, falling factory prices) added some pressure, but it was balanced by trade optimism.
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The market is also watching how China’s lower May oil imports and higher OPEC+ production will affect the big picture.
So far, the tone is cautiously optimistic, but supply and demand will determine if prices hold or drop in the weeks ahead.
⛽ Diesel Update: Off to a Strong Start in June
Diesel prices are climbing again to kick off June, continuing a pattern we’ve seen over the past couple of months:
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Strong start → followed by a pullback later in the month
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Currently, diesel has moved above its 30-day moving average of $2.0878
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Next level to watch: $2.21—a key price we last hit in May
That $2.20–$2.21 range has been a resistance point since March, meaning prices have tested it before but haven’t been able to stay above it. We’ll see if June breaks the trend or repeats it.
📞 Have questions about diesel pricing or summer fuel needs? Call your account manager today—we’re ready to help you plan ahead.
