🌽 Today’s Market News – Fuel, Oil & Trade Updates for Midwest Farmers
🛢 Strong Global Oil Demand, Despite Sanctions
The head of Saudi Aramco, one of the world’s largest oil companies, says global demand for oil is still strong—even with new sanctions placed on Russia. Demand in China, one of the world’s biggest oil buyers, remains solid. On top of that, a major refinery in Kuwait temporarily shut down, and oil production in Iraq has increased. These shifts show how countries are constantly adjusting their supply, especially during global tensions.
🚢 Sanctions Loophole Discovered
A new investigation found that a New Zealand insurance company has been helping oil shipments from Iran and Russia slip past international sanctions. These tankers were insured despite links to banned groups, allowing millions of barrels of oil to quietly reach markets. It’s similar to how smugglers have operated in the past and raises serious questions about how sanctions are enforced worldwide.
🇮🇳 India Hits Pause on Russian Oil Orders
India, one of Russia’s biggest oil customers, is now holding off on new orders of Russian oil. The main reason? Concerns over how to make payments without breaking global rules. Indian companies are still following through on past contracts, but they’re also actively exploring new sources of oil. This could reduce Russia’s grip on the Asian energy market and may shuffle trade routes in the near future.
📉 Market Outlook
Crude oil prices slipped about 1% as the market reacts to sanctions and upcoming decisions from OPEC+ (the alliance of oil-producing countries). Many investors are worried about possible supply hiccups but are hopeful OPEC+ will step in to balance things. Also adding pressure: reports that U.S. oil stockpiles grew last week. For now, the market is in a wait-and-see mode, watching how global politics and demand play out.
🌽 Energy Highlights – U.S. Ethanol Export Boom
There’s good news on the ethanol front! U.S. exports of ethanol—mostly made from corn—are on track to hit record levels for the second year in a row. From January through July, the U.S. exported an average of 138,000 barrels a day, up 9% over last year’s record. Even though domestic demand for ethanol is flat, global buyers are lining up—meaning exports now make up 13% of total production. That’s up from 12% last year.
The U.S. remains the top dog in both producing and exporting ethanol, which is a renewable fuel blended into gasoline. So for our corn producers, these strong export numbers are a welcome sign.
📞 Want to know what this could mean for your farm fuel budget? Give your account manager a call—we’re here to help you stay ahead.
The information, materials, and opinions (“Cooperative Energy Company Materials”) provided by Cooperative Energy Company are for general informational purposes only. They are not intended as legal, trading, or professional advice and should not be relied upon as such. Cooperative Energy Company does not guarantee the accuracy, completeness, or fitness for any particular purpose of these materials and assumes no liability for any use, errors, or omissions.
