🚜 Today’s Market News – Energy Trends Farmers Should Know
🌍 OPEC+ June Oil Report: Steady Demand, More Supply Coming
OPEC+ (a group of oil-producing nations) just released its June 2025 market update, and the forecast for global oil demand remains steady.
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Global demand is expected to grow by 1.29 million barrels per day (bpd) in 2025 and 1.28 million bpd in 2026.
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In May, OPEC+ pumped out an average of 41.23 million bpd, with Saudi Arabia leading the increase, up 177,000 bpd.
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Iraq cut production by 50,000 bpd.
Looking ahead, most new oil supply growth will come from outside of OPEC+, including the U.S. Together, Saudi Arabia and the U.S. will make up 40% of the world’s added oil capacity over the next couple of years.
🛢️ U.S. Energy Stocks: Big Draw in Crude Oil
On Tuesday, the American Petroleum Institute (API) reported a major drop in U.S. crude oil inventories—down 10.1 million barrels last week.
Here’s what else they reported:
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Diesel (distillate) supplies rose slightly
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Gasoline supplies dropped a bit
We’ll get the official government numbers from the EIA later this morning (9:30am CST). Early estimates suggest:
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Crude down by 1.79 million barrels
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Gasoline and diesel both seeing small increases
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Refineries still running steady, with a minor dip in utilization
🇪🇺 European Refineries Face Big Changes
European oil refineries are under pressure. With less demand for gasoline and diesel, and growing climate regulations, many plants could shut down by 2030–2035.
Why it matters:
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The International Energy Agency says up to 1.5 million barrels/day of refining capacity may close in Europe
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Older refineries that can’t add carbon-reducing tech like biofuels or electrification are most at risk
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These closures could shift fuel supply patterns and increase competition from newer refineries in Asia, the Middle East, and Africa
🔍 Market Overview: All Eyes on Iran, EIA Report & The Fed
Oil prices are holding steady this morning, as traders weigh global risk. Two big things are in focus:
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Middle East tensions: The Israel–Iran conflict is heating up, with Trump demanding Iran’s “unconditional surrender.” Iran’s leadership strongly rejected that.
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EIA stock report and Federal Reserve update:
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The EIA will confirm whether crude inventories fell by 10 million barrels
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The Fed could hint at any upcoming changes to interest rates, which affects the broader economy
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🛑 Iran’s Oil Exports Drop Sharply
Here’s a major shift: Iran’s oil exports have fallen off a cliff this week.
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Current estimates: just 102,000 barrels/day, compared to the 1.7 million daily average earlier this year
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Iran was producing around 3.4 million barrels/day of crude oil before tensions escalated
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China remains the main buyer, but sanctions and conflict are disrupting flows
Even though pipelines and oilfields haven’t been hit directly, the political situation alone has dramatically cut exports—which could influence fuel prices worldwide.
📞 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.
