🌾 Today’s Market News – What Farmers Should Know
🔥 Russian Port Hit by Drone Strikes
One of Russia’s key ports on the Black Sea, Tuapse, was forced to shut down fuel exports and refinery operations after a Ukrainian drone strike caused a fire and damaged a ship on November 2. This port was supposed to ramp up exports of diesel, fuel oil, and other fuels in November, with multiple tankers already lined up. Now, those ships have been moved away, and operations are paused. This refinery mainly supplies countries like China, Malaysia, and Turkey. These kinds of attacks could impact fuel prices globally, depending on how long disruptions continue.
🛢 U.S. Oil and Fuel Stock Updates
Last week, U.S. crude oil inventories rose by 5.2 million barrels, way above what analysts expected. Why? Mostly because we imported more oil and refineries slowed down production a bit. Meanwhile:
- Gasoline supplies dropped sharply by 4.7 million barrels — likely due to issues at BP’s big refinery in Indiana.
- Diesel and heating oil stocks also slipped slightly.
- Fuel demand dropped a bit overall, especially for gasoline, while diesel demand stayed steady.
Even with all that crude oil in storage, gas and diesel prices didn’t fall much — mostly because of how tight refined fuel supplies still are.
🏴☠ Pirates Attack Tanker in Africa
A gasoline-carrying tanker was attacked by pirates off the coast of Somalia. Thankfully, the 24 crew members are safe. This marks a resurgence in pirate activity in the region, which had been quiet for years. These attacks can affect global fuel shipping routes and prices — especially when combined with conflicts in nearby areas like the Red Sea.
💡 Market Outlook:
Gas and diesel prices remain stubbornly high, even when crude oil prices soften. Why?
- Tight global crude supply
- Refineries running at reduced capacity (due to maintenance or limits)
- Higher seasonal demand
- Changes in fuel blends and taxesAs of this morning:
- Crude is up $0.48 to $60.08
- Heating oil is up to $2.5127
RBOB (blended gas used at the pump) is up to $1.9535
Expect fuel prices to stay strong heading into colder months.
📊 Energy Highlights
Between 2010 and 2024, U.S. oil production stayed strong — but only because new wells kept being drilled to make up for older ones that naturally slowed down. Horizontal drilling (vs. old-school vertical drilling) helped grow supply, but these wells also decline faster. In December 2024:
- Older wells were producing 6.7 million barrels per day (down from 11 million a year earlier)
- But 15,000+ new wells added enough to keep overall U.S. production steady at 11.2 million barrels per day
This constant balancing act of drilling new wells while old ones slow down is key to maintaining fuel supply in the U.S.
📞 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.
The information, materials, and opinions (“Cooperative Energy Company Materials”) provided by Cooperative Energy Company are for general informational purposes only. They are not intended as legal, trading, or professional advice and should not be relied upon as such. Cooperative Energy Company does not guarantee the accuracy, completeness, or fitness for any particular purpose of these materials and assumes no liability for any use, errors, or omissions.
