🚜 Today’s Market News – July Oil Update for Rural America
Fuel, energy, and trade headlines that could impact your farm operation.
🔧 Oil Prices Hold Steady — But That Could Change Fast
Oil prices stayed pretty flat Tuesday after President Trump gave Russia a 50-day deadline to end the war in Ukraine. That announcement eased fears of immediate U.S. sanctions, which would’ve tightened global oil supplies. But if new sanctions do come later, countries like China, India, and Turkey—who rely heavily on Russian oil—could be affected. That would likely push prices up.
Meanwhile, Trump’s talk of new tariffs on goods from Europe and Mexico (starting August 1) raised some red flags. Tariffs often slow global trade, and that can mean less fuel demand. Still, OPEC—the group of oil-producing nations—expects demand to stay strong through summer, which could keep prices relatively stable.
🛑 Drone Strike Disrupts Oil Field in Iraq
A drone attack shut down production at the Sarsang oilfield in northern Iraq this week. No one was hurt, but the blast forced a temporary shutdown just as the company (a U.S. operator) was about to sign a deal to expand elsewhere in the country. Officials suspect Iran-backed militias were behind the attack, although no one has officially claimed responsibility. These types of events add uncertainty to the global oil market.
🌍 OPEC+ Plans to Pump More Oil This Summer
OPEC+ is sticking with its prediction that oil demand will grow through the rest of 2025 and into 2026. The group pointed to stronger-than-expected economic recoveries in places like India, China, Brazil—and even here in the U.S. They plan to increase oil output in August by 548,000 barrels a day to meet that demand. Refineries are already busy, with more gasoline and jet fuel being produced to meet travel and shipping needs.
Even though OPEC+ is adding supply, the International Energy Agency (IEA) warns that demand might not grow as fast as expected. Still, tight supply and seasonal fuel use are keeping prices from dropping too far.
📊 Market Snapshot
Oil prices are bouncing around as global events and summer driving season fuel demand mix with economic uncertainty. U.S. fuel inventories are being drawn down—especially gasoline and diesel—showing strong use on the road and in ag operations. Even with a recent ceasefire between Israel and Iran, tensions in the Middle East remain a concern for global supply routes.
📉 Crude: Down $0.22 to $66.76
📈 Diesel (HO): Up $0.0209 to $2.4107
📈 Gasoline (RBOB): Up $0.0143 to $2.1797
💡 Energy Highlights – By the Numbers
Between 2006 and 2024, the U.S. has cut its crude oil and petroleum imports by nearly 40%—from 14 million barrels a day to just 8 million. The biggest drop happened in the Gulf and East Coast regions, which now produce more of their own energy. At the same time, Canada has become our top foreign oil supplier. In fact, thanks to the expanded Trans Mountain pipeline, Canada now provides nearly all the oil used in Midwest and Mountain state refineries.
📞 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.
