Today’s Market News –
🇺🇸 Oil Stockpiles Rise Unexpectedly
The U.S. saw a surprise jump in oil reserves last week—adding 7.1 million barrels when most experts expected a decrease. This could be a one-time fluke, possibly due to accounting adjustments. At the same time, gasoline inventories dropped, as families hit the road for the 4th of July. Gasoline demand spiked 6%, reaching its highest levels in months. Diesel and heating oil supplies also fell slightly, while refineries ran a bit slower than last week.
🚢 Red Sea Shipping Crisis Escalates
Trouble in the Red Sea is heating up again. A cargo ship called Eternity C sank after being hit by missile attacks from Yemen’s Houthi militia, resulting in the deaths of 4 crew members, with 15 still missing. Another ship, Magic Seas, was also attacked. These incidents are part of renewed attacks linked to Middle East tensions. As a result, oil prices have started climbing again as shipping through the region becomes riskier and slower.
🛢️ OPEC’s Oil Demand Forecast Shrinks Short-Term
OPEC, the group of major oil-producing countries, cut its forecast for how much oil the world will need over the next few years, mainly because China’s economy is cooling off. But in the long run, they still expect global oil demand to grow—especially in developing countries. In response, OPEC+ (including Russia) is working to pump more oil to win back market share, though it may face challenges keeping up with those goals.
Market Snapshot
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Oil prices slid slightly today, with U.S. crude down to $67.76 a barrel.
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New tariffs proposed by President Trump on countries like Japan, South Korea, and Brazil are creating worries about slower global growth, which could mean less fuel demand.
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On the flip side, a weaker U.S. dollar is helping oil prices hold steady, along with record global air travel and strong summer fuel demand here at home.
Energy Highlights: California’s Refinery Closures Could Raise Prices
California is bracing for a big change—17% of the state’s oil refining capacity is set to shut down over the next year. This includes two major refineries, continuing a trend that’s seen others close in recent years. While it won’t affect the whole country much, the West Coast will feel the pinch, especially since it’s not well connected to refineries in places like Texas or Louisiana. That means more fuel may need to be shipped in from Asia, likely raising prices for folks in California, Arizona, and Nevada. Gasoline imports already hit a record high in May, and those numbers are expected to grow.
📞 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.
