Today’s Market News — Simplified for Our Region
India Backs Off Russian Oil
After President Trump’s recent threat to slap 100% tariffs on countries buying Russian oil, India—the world’s third-largest oil buyer—has hit pause on those purchases. Instead, Indian refiners are now looking to buy oil from the Middle East to keep their supply steady.
Gasoline Use Rises in the U.S.
The latest government data shows Americans hit the road in a big way last week. Gasoline demand jumped to 9.2 million barrels per day, up from just under 9 million the week before. That helped draw down gasoline stockpiles by 2.7 million barrels—much more than expected. Meanwhile, crude oil inventories surprisingly rose by 7.7 million barrels. Diesel stockpiles also saw a bump, with a build of 3.6 million barrels.
U.S. Tightens Sanctions on Iran
The U.S. just rolled out its biggest round of sanctions against Iran since 2018. These new restrictions target more than 115 individuals, companies, and ships—focusing heavily on Iran’s oil shipping network. While the White House has left the door open for future talks with Iran, current tensions make negotiations unlikely any time soon.
Market Overview
As July comes to a close, oil and fuel prices are seeing minor losses. The August contracts for both diesel and gasoline are expiring today, and traders will shift to September pricing. Crude oil prices briefly jumped above $70 yesterday but dipped again this morning. Now that the Federal Reserve has decided to keep interest rates steady, attention turns to this weekend’s OPEC+ meeting, where oil production plans will be discussed.
Energy Highlights – Diesel in Focus
Diesel is a key fuel for global transportation and agriculture. Despite early concerns that 2025 demand would be weak, diesel use has remained strong—especially in India, China, and here in the U.S. In fact, U.S. demand is nearly 5% higher than this time last year.
But there’s a catch: global diesel inventories are low. This is partly due to unexpected refinery shutdowns in places like England and Israel, and also because there’s a shortage of heavier crude oil types that yield more diesel. With farming, freight, and industrial needs running high, keeping an eye on diesel supply will be critical in the months ahead.
📞 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.
