🚜 Trade Talk Heating Up
President Trump is once again talking about adding tariffs (taxes on imports), especially on goods coming from the European Union and Japan. That’s making energy markets nervous. When global trade slows down, oil demand tends to dip, which can push fuel prices lower. But at the same time, global tensions can drive prices up. It’s a tug-of-war, and oil markets are reacting with ups and downs. For now, it’s a wait-and-see game as folks keep an eye on what comes out of the next trade talks.
🇨🇳 China’s Refineries Get a Boost
Over in China, the province of Shandong—home to a lot of small, independent oil refineries (often called “teapots”)—is giving those refineries a tax break on fuel oil imports. That should help them save money and possibly ramp up production. Why does that matter here? Because changes in global refining and demand can ripple into the price we pay for fuel, especially during the busy harvest and hauling seasons.
🛢️ Big Shake-Up with Citgo’s Parent Company
A U.S. court is working through a big legal case involving Venezuela’s debts. As part of that, they’re selling off shares of Citgo’s parent company—Citgo being a major U.S. fuel supplier. A bid worth $7.38 billion is currently the frontrunner. It’s complicated legal and political stuff, but long story short: this could affect where our fuel comes from and how much it costs in the long run.
📉 Market Overview
Oil prices are taking a small step back right now. The main reasons? Worries about trade fights (like those tariffs mentioned earlier) and the possibility that big oil producers like OPEC+ will start pumping more oil soon. If that happens, supply could rise faster than demand—meaning more oil on the market and possibly lower prices.
Still, things like summer fuel demand and what happens next in the Middle East can flip the script. So, traders are watching closely for any new updates.
🔥 Energy Highlights: What We’re Using in the U.S.
In 2024, Americans used a lot of energy—94 quadrillion BTUs, to be exact.
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Fossil fuels (like oil, gas, and coal) made up 82% of that.
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Renewables (like wind and solar) and nuclear power made up the other 18%.
Some interesting takeaways:
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Petroleum is still king—used the most.
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Nuclear just passed coal for the first time.
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Biofuels are now the top-used renewable energy in the country.
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Wind and solar are growing fast and now beat out hydropower, which used to be the big name in renewables.
It’s a good reminder of how energy sources keep shifting and how those changes can affect everything from grain drying costs to diesel prices on the farm.
📞 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.
