Today’s Market News — Simplified for the Farm Community
OPEC+ Plans Big Oil Supply Boost in August
OPEC+, a group of major oil-producing countries, is expected to increase its oil output by over 400,000 barrels per day in August. That’s part of a bigger plan to add nearly 1.8 million barrels a day throughout 2025. The goal? To grab back some market share by producing more oil. However, this increased supply could keep oil prices from going much higher. Some members of the group aren’t on the same page yet, so final decisions will likely be made during their July 6 meeting.
California Fuel Prices May Spike—Here’s Why It Matters
California is bracing for higher fuel prices as two local refineries prepare to shut down and pipeline issues could disrupt supply. Right now, their average gas price is already about $4.61 per gallon, well above the U.S. average of $3.21. California officials are asking to ease profit limits for refineries and bring in more imported fuel to avoid major price hikes—possibly 15 to 30 cents more per gallon. While this is happening on the West Coast, it still affects broader U.S. gas prices and the oil market as a whole.
Oil Prices Drop After Middle East Ceasefire
Oil prices have fallen sharply this week—down around 20% from mid-June highs—thanks to a ceasefire between Israel and Iran. With no major supply disruptions so far, the market is calming down. U.S. oil (WTI) is now sitting around $65 per barrel, compared to more than $80 just a few weeks ago. Experts say we may hover near $67 a barrel for the rest of the year as global oil supplies stay strong.
🚜 Market Snapshot
Crude oil prices are slipping slightly today. While demand for gas is strong with summer travel in full swing, new oil supplies from OPEC+ and ongoing peace talks in the Middle East are keeping prices from rising much. In California, refinery shutdowns may push gas prices even higher—another factor to watch as it can ripple into national fuel costs.
As always, we’ll keep you posted on oil and fuel trends that affect your farm operation.
📞 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.
