🌾 Today’s Market News — Explained for You
🇺🇸 U.S. Oil Production Set to Dip in 2026
For the first time in years, government experts are predicting that U.S. crude oil production could slip in 2026. The Energy Information Administration (EIA) says we may produce 13.37 million barrels per day, slightly down from this year’s 13.42 million. That’s mainly because oil prices have been dropping and fewer wells are being drilled. Even though former President Trump has pushed for more U.S. oil, this suggests we may be hitting a limit, especially as global markets get flooded with more supply from OPEC+ and others.
📦 Oil & Fuel Inventories
According to Tuesday’s API report, oil inventories dropped slightly last week, with 400,000 fewer barrels nationwide and 700,000 barrels down at the Cushing storage hub. Meanwhile, gasoline and diesel supplies are on the rise—gasoline up by 3 million barrels and diesel by nearly 4 million. That could point to a temporary dip in fuel demand post-Memorial Day, or simply refiners preparing for the summer drive season.
🇪🇺 Europe Tightens the Screws on Russia
The European Union is proposing a fresh set of sanctions against Russia—the 18th round so far. They’re targeting banks, oil revenues, and pipelines like Nord Stream. One major proposal: lowering the price cap on Russian oil from $60 to $45 per barrel. These moves are meant to keep pressure on Russia’s economy during the ongoing conflict in Ukraine.
🛢️ Market Snapshot
Oil prices are climbing again—West Texas Intermediate (WTI) is trading at nearly $66 a barrel, a seven-week high. Why?
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Positive news out of U.S.-China trade talks
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Tensions with Iran
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A dip in U.S. crude inventories
These factors are pushing prices up, despite OPEC+ planning more production.
⚡ U.S. Renewable Energy Sets Records in 2024
The U.S. broke new ground in renewable energy last year!
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Biofuels (like ethanol and renewable diesel) hit a record 1.4 million barrels per day—up 6% from 2023.
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Solar power grew by 25%, and wind grew by 8%.
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Even though hydropower and nuclear have stayed flat, renewables overall had a strong year thanks to new technology and investment.
📞 Have questions about fuel prices or planning for your farm? Call your account manager today—we’re here to help you stay ahead.
