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Today’s Market News – August Energy Update for Farmers

🔎 U.S. Fuel Inventory Snapshot

The American Petroleum Institute (API) reported a mixed bag last week:

• Crude oil supplies dropped by 2.42 million barrels (a positive sign for prices).

• Diesel fuel (distillates) went up by about 535,000 barrels.

• Gasoline stocks fell by 956,000 barrels, showing strong summer demand.

Analysts are watching today’s Energy Information Administration (EIA) report closely, which is expected to show:

• A 1.8 million barrel drop in crude oil

• A 928,000 barrel increase in diesel

• A 915,000 barrel decrease in gasoline
  Refineries are running just a bit less than last week, now operating at 95.7% capacity. The EIA report comes out at 9:30 a.m. this morning.

🛢️ Future Oil and Gas Leases

President Trump’s administration just released a 15-year plan for offshore oil and gas lease sales.

• The plan includes 30 lease auctions in the Gulf of Mexico from now through 2040.

• It also schedules six sales in Alaska’s Cook Inlet through 2032.
  This marks a big shift from the previous administration, aiming to increase U.S. energy independence and oil production.

🌪️ Refinery Disruption in the Midwest

A powerful storm knocked out key parts of the BP Whiting Refinery near Chicago—the largest refinery in the Midwest.

• The site produces gasoline, diesel, and jet fuel for much of our region.

• Temporary shutdowns due to flooding could impact supply and prices in the coming weeks, especially for farmers relying on diesel.

🌍 Market Outlook

Oil prices are up a little today, helped by news of falling U.S. crude inventories.
However, there’s still a lot of pressure on prices:

• Peace talks between Russia and Ukraine are ongoing. President Trump even mentioned the U.S. might offer air support to help reach a deal.

• Sanctions on Russian oil are still in place—for now.

• OPEC+ is increasing production, which adds more supply to the market.
  Despite today’s price bounce, oil is still down over 10% this month—good for fuel buyers, not so great for oil producers.

🇮🇳 India Pulls Back on Russian Oil

India’s oil imports from Russia dropped by nearly 25% in July. Why?

• Their usual summer demand dip during the monsoon season

• Smaller price discounts made Russian oil less appealing

• Political pressure from President Trump urging India to buy less from Russia

India imported about 1.5 million barrels per day of Russian oil in July, down from June. Still, Russia remains India’s biggest oil supplier, followed by Iraq and Saudi Arabia.

📞 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.