Today’s Market News: Global Oil Moves and Local Impacts
🇪🇺 EU Tightens Sanctions on Russian Oil – But Will It Matter?
The European Union just approved its 18th round of sanctions against Russia, aimed at cutting off revenue tied to the war in Ukraine. This time, they’re also targeting India’s Nayara Energy, a company that’s been exporting fuel made from Russian crude oil.
That said, don’t expect major shocks to oil markets. Russia has gotten pretty good at finding ways around these sanctions, and even the Kremlin says it’s learned how to work with them. The most impactful part might be the EU’s ban on refined oil made from Russian crude—even if it’s processed in a third country like India—but enforcing that ban could be tricky.
Meanwhile, U.S. President Trump is pushing for peace talks and threatening more sanctions on countries that keep buying Russian oil if a deal isn’t reached within 50 days.
🇨🇳 China’s Oil Trade: Imports Rebound, Exports Surge
China imported more fuel oil in June—up 7% from May, thanks to tax breaks for some of its smaller refineries. But overall imports for the year are still down nearly 20% compared to 2024.
At the same time, exports of marine fuel (used to power ships) are booming—up 88% from May and 46% higher than last June. This shows strong demand from cargo ships and ocean traffic, especially around China’s busy coastal ports.
🛢️ Rig Count Ticks Up in the U.S. – First Time in 12 Weeks
After nearly three months of no movement, U.S. oil and gas companies added seven rigs last week, the biggest jump since December. There are now 544 total rigs, although that’s still 7% fewer than this time last year.
Here’s the breakdown:
-
Oil rigs fell by 2, now at the lowest count since 2021.
-
Gas rigs jumped by 9, hitting their highest point since March.
-
Texas and the Permian Basin saw small declines, but the Haynesville shale area (covering parts of Louisiana and Texas) added 3 rigs.
Energy companies continue to keep things tight, focusing more on paying down debt and keeping investors happy instead of drilling new wells.
🌎 Market Overview: A Cautious Start to the Week
Oil prices didn’t move much to start the week. Markets seem to be shrugging off the EU’s new sanctions, at least for now. Many believe Russia will continue exporting oil despite the new rules.
Other things in the mix:
-
U.S. tariffs on goods from the EU are set to begin August 1, which could affect demand.
-
Iran is heading back to nuclear talks with European nations, and that could change future oil flows depending on how things shake out.
🔥 Energy Highlights: Heating Oil on the Rise
Heating oil prices have bounced around this summer, but they’re currently sitting at about $2.46 per gallon, with a small gain of about 0.50% today.
Here’s what the chart signals:
-
The 40-day, 100-day, and 200-day moving averages are all acting as support, meaning prices are holding steady above those levels.
-
The Relative Strength Index (RSI) is nearing 60, suggesting that heating oil might be getting close to an “overbought” level—basically, prices could be peaking in the short term.
📞 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.
