Today’s Market News – What Farmers Should Know
📈 Consumer Prices in July
Prices for everyday goods and services in the U.S. ticked up again in July—nothing dramatic, but noticeable in areas like airline tickets and home furniture. A big reason? Tariffs. Some of these extra import costs are starting to make their way into the prices we pay.
Even so, financial experts still believe the Federal Reserve will likely lower interest rates in September, which could help with borrowing costs. But some economists warn we might not have seen the full effect of these tariffs yet. Also raising eyebrows: ongoing issues at the Bureau of Labor Statistics, including budget cuts and leadership changes, have sparked concerns about how reliable inflation and jobs data really are.
🌍 OPEC Forecast: Oil Demand to Rise in 2026
OPEC—one of the biggest players in the oil market—just updated its outlook for 2026. They now expect global demand for oil to rise by over 1.3 million barrels per day, while production from non-OPEC countries (like the U.S.) is expected to slow down.
This gives OPEC+ a chance to boost production again and grab more of the market. One reason U.S. production might dip? Shale producers are tightening budgets due to lower prices. OPEC also slightly raised its forecast for global economic growth, saying the big economies are holding up better than expected despite all the trade disputes and global tensions.
🛢️ Weekly Oil Inventory Update (API Data)
Here’s what industry watchers are saying about last week’s oil supplies:
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Crude oil: API expects a build of 1.5 million barrels, while Reuters expects a slight draw of 0.3 million barrels.
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Cushing, OK (key U.S. storage hub): API expects a draw of 0.6 million barrels.
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Gasoline: API expects a 1.8 million barrel draw, while Reuters projects 0.7 million.
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Distillates (like diesel): API expects a 0.3 million barrel build; Reuters says 0.7 million.
So, some disagreement in predictions, but we’ll have clearer data later this week.
🛢️ Market Snapshot
Oil and refined fuel prices slipped a bit this morning. Why?
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A bearish inventory report and soft fuel demand across key economies are also weighing prices down.
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Investors are eyeing a possible meeting between President Trump and President Putin, but no major breakthrough is expected.
Bottom line: Markets are cautious, and oil prices are stuck in a “wait and see” mode.
⚡ Energy Highlights – U.S. Energy Exports Hit Record
In 2024, the U.S. exported about 30% of the energy it produced, a major leap compared to decades past. Most of these exports were fossil fuels, heading to places like Canada, Europe, and Asia.
Out of the 103 quadrillion British thermal units (BTUs) of energy we produced, a record 31 quadrillion went abroad. Keep in mind, though: what we don’t export isn’t necessarily what we use. Domestic use also includes imports and energy pulled from storage.
📞 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.
