Today’s Market News – Simplified for Midwest Producers
🇺🇸 U.S. Economy Shows Stronger Growth Than Expected
The U.S. economy picked up more speed than most experts predicted this spring. According to the latest report, the nation’s Gross Domestic Product (GDP) grew at a 3.0% annual rate in the second quarter—better than the 2.4% growth economists were expecting. This follows a slight dip earlier in the year. However, many economists warn this growth number might be misleading due to the impact of shifting trade and inventory levels tied to ongoing tariff battles.
Good news: Inflation for the quarter came in lower than expected at 2.1%. Still, many believe the rest of the year could see slower growth, especially if tariff pressures continue.
🛢️ U.S. Targets Buyers of Russian Oil
China buys more Russian oil than any other country—about 2 million barrels per day. But the U.S. may soon crack down harder. President Trump recently gave Russia just 10–12 more days to show progress toward peace in Ukraine, or countries buying their oil (like China, India, and Turkey) could face new tariffs—up to 100%, or even 500% if a new law gets used.
During recent U.S.–China trade talks in Sweden, Treasury Secretary Scott Bessent warned China that continuing to buy Russian oil could trigger these penalties. China pushed back, saying they’ll defend their energy independence. Analysts expect India might go along with the U.S. sanctions, but China likely won’t.
🛢️ Fuel Inventories: A Mixed Bag
Today, the U.S. government will release its weekly report on fuel supplies. Early numbers from the American Petroleum Institute (API) show some surprises:
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Crude oil: Up 1.54 million barrels (a build, not a draw)
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Distillates (diesel & heating oil): Up 4.19 million barrels
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Gasoline: Down 1.74 million barrels
The drawdown in gasoline stocks suggests solid demand, but the builds in crude and diesel could signal supply is outpacing use—for now.
📈 Market Snapshot
The oil market is off to a quiet start today. Crude prices are nudging upward, but diesel and gasoline are holding steady or slightly lower. RBOB gasoline (what’s used to blend for consumer fuel) had a big gain yesterday—up over 8 cents and closing at the highest price since June 21.
Market watchers are focused on today’s Fed meeting, which could influence interest rates, and the EIA inventory report, which may shift short-term price trends.
✈️ Energy Highlights – Europe Moves Away from Russian Fuels
Europe is trying to cut off all ties to Russian energy. Back in 2021, Russia supplied 40% of Europe’s diesel imports. But after the Ukraine conflict escalated, Europe turned to China, India, and Turkey instead.
Here’s the catch: those countries are buying large amounts of cheap Russian oil and refining it into diesel and jet fuel—so the fuel still indirectly comes from Russia. Now, the EU is rolling out even tougher rules to stop imports of refined products made from Russian oil. These bans could begin next year, and they’re part of the EU’s 18th round of sanctions against Russia.
📞 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.
