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🛢️ This Week’s Fuel & Oil Update – What Iowa Farmers Should Know

🇸🇦 Saudi Arabia Plans to Lower Oil Prices

Saudi Arabia is expected to cut oil prices in July for buyers in Asia—bringing them to their lowest level in six months. The price drop comes as OPEC+ (a group of major oil-producing countries) continues to increase oil supply, while demand softens due to global economic concerns.

Arab Light crude—the country’s most popular grade—is expected to go down by 40 to 50 cents per barrel, landing just under $1 above the benchmark price. Other types of Saudi oil (like Arab Extra Light and Arab Heavy) may also see similar cuts.

Why does this matter? These price changes reflect slower global demand, which is partly due to rising oil supply and ongoing worries about the global economy—including tensions from new tariff battles.

⚖️ Trump Tariffs Blocked by Court

A U.S. court just blocked most of the tariffs that the Trump administration had imposed earlier this year. These included taxes on goods from Canada, China, and Mexico, among others.

While this decision is a setback for the administration, it doesn’t block every type of tariff. The government can still impose sector-specific or country-specific tariffs through other legal channels. That means there’s still uncertainty around trade policy, but for now, it’s easing some of the pressure on global markets.

🧾 Inventory Snapshot: API Weekly Report

The American Petroleum Institute (API) released its weekly forecast for U.S. oil inventories:

• Crude oil: Expected to drop by 4.2 million barrels

• Cushing storage hub: Down 0.3 million barrels

• Gasoline: Expected draw of 0.5 million barrels

• Distillates (like diesel): Expected to increase by 1.3 million barrels

Reuters analysts expect similar results, with only slight differences—watch for today’s official government numbers to confirm.

📈 Market Overview: What’s Moving Prices?

Oil prices are on the rise this morning (Thursday) thanks to a few key factors:

• The court blocking Trump’s tariffs is boosting investor confidence and easing fears of a global economic slowdown.

• New U.S. sanctions on Russian crude could tighten supply even further.

• Chevron halted operations in Venezuela, reducing global output.

• A wildfire in Alberta, Canada has forced some oil and gas production to stop.

All of this is happening as OPEC+ prepares for its July meeting, where another production increase may be announced.

⛽ RBOB Gasoline Update – Watching Summer Demand

Gasoline prices are showing modest gains to start Thursday. The June RBOB (Reformulated Gasoline Blendstock) contract is hovering around its 200-day, 100-day, and 30-day moving averages—which means it’s not showing strong upward or downward momentum just yet.

The Relative Strength Index (RSI) is at 48, suggesting the market is neutral (not overbought or oversold). As we enter summer driving season, today’s Department of Energy (DOE) report on gasoline demand will offer clues about how strong fuel use will be in the weeks ahead.

📞 Want help preparing your fuel plan for summer? Call your account manager today for personalized support and updates.