🚛 U.S. Trucking Slows Down (Again)
For the second month in a row, U.S. trucking companies are hauling a bit less. April saw a small 0.3% drop in freight tonnage, following a bigger 1.5% drop in March. According to Bob Costello, Chief Economist at the American Trucking Associations, the rebound folks were hoping for this year just hasn’t happened. Why? The economy’s still shaky, and global trade issues (like tariffs) are adding pressure. Trucking moves about 73% of all U.S. freight, so when those trucks are slowing down, it’s often a sign the economy’s pumping the brakes too.
🛢️ Kazakhstan and Oil Production
Kazakhstan—an oil-rich country that’s part of the OPEC+ group—is producing more oil than it’s supposed to. In April, they pumped 3% less than the month before, but still more than their limit. This month (May), they’re averaging 1.86 million barrels a day—up 2% already. OPEC+ is trying to get all members to cut back to support oil prices, but Kazakhstan says it’s tough telling big companies like Chevron and ExxonMobil to slow down. This could create friction within the group and affect oil prices moving forward.
🏭 U.S. Oil Inventories: A Surprise Build
The American Petroleum Institute (API) just reported a surprise: U.S. oil stockpiles went up by 2.5 million barrels last week, when most expected a drop. On the other hand, gasoline and diesel inventories fell, with gasoline down by 3.2 million barrels and distillates (like diesel) down 1.4 million. The U.S. government’s official numbers from the Energy Information Administration (EIA) will be released soon, and traders are watching closely—especially after this unexpected increase.
🌍 Market Outlook: Global Tensions and Rain in the Fields
Oil prices are on the rise today—up over 1%—because of worries that Israel may be preparing a strike on Iranian nuclear sites. That kind of geopolitical tension makes traders nervous about possible oil supply disruptions. Overnight, crude prices hit as high as $64.19 before easing back a bit.
Meanwhile, here at home, recent rains have slowed down fieldwork—though many farmers are likely welcoming the moisture after a dry stretch.
🌎 Energy Insight: OPEC vs. U.S. Shale
OPEC+ has a not-so-secret goal: boost their oil output and push back against rising U.S. oil production. U.S. shale has been a tough competitor, growing from 15% of the global oil market in 2014 to 22% in 2024. But now, American producers are feeling some pressure—higher costs and lower profits due to slipping oil prices. If prices drop below $55–$60 a barrel, it could really start to slow down U.S. production and help OPEC regain some ground.
