🛢️ This Week’s Oil Market Update – What Farmers Should Know
🌍 OPEC+ Eyes Future Production Levels
The oil-producing nations in OPEC+ are meeting this week to talk about their long-term plans. While they’re not expected to make immediate changes, one big topic is how much oil each country will be allowed to produce in 2027.
Some countries, like the UAE and Iraq, want permission to produce more because they’ve boosted their oil production capacity. Others are producing less and don’t want to lose influence. OPEC+ will likely ask their headquarters to come up with a fair way to set new quotas.
Meanwhile, eight OPEC+ countries are also discussing another production increase for July—about 411,000 barrels per day—to continue the same pace of gradual increases seen in May and June. These moves are part of a slow process to phase out the production cuts that started back in 2022. If things go as planned, all cuts could be gone by 2026, and new baseline numbers would guide future output.
🇻🇪 Chevron’s Role in Venezuela Limited
This week, the U.S. government placed new restrictions on Chevron’s activities in Venezuela, a country with large oil reserves but a troubled political and economic situation.
Chevron is still allowed to keep its assets there, but it can’t drill, export oil, or expand its work in the country. The move follows the expiration of a more flexible license from the Biden administration and aims to avoid supporting Venezuela’s President Maduro.
As a result, Chevron has stopped working with some local contractors. It’s unclear if other foreign oil companies operating with Venezuela’s state-run oil company will face similar rules.
🔥 Alberta Wildfires Disrupt Oil Production
A wildfire in northern Alberta, Canada, near the town of Swan Hills, has forced 1,200 people to evacuate and led to temporary shutdowns of oil production, including 4,000 barrels per day by Aspenleaf Energy.
The fire has already burned over 1,600 hectares and is still out of control. Another smaller fire is active in Yellowhead County. Companies like Canadian Natural Resources also operate in the area, but haven’t yet reported on the impact.
This marks the first major wildfire in Alberta this spring, continuing a pattern from recent years where fires have heavily affected oil and gas operations.
📈 Market Overview: Prices Edge Up
Oil prices ticked slightly higher on Wednesday as supply concerns returned:
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Chevron’s new restrictions in Venezuela
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Disruptions from Alberta wildfires
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Upcoming OPEC+ decisions on production
With summer fuel demand on the rise and other global oil producers (outside of OPEC+) not increasing output much, there’s more pressure on OPEC+ to help meet demand.
Geopolitical issues—like U.S.-Iran negotiations and global trade talks—are also keeping oil traders on their toes, as any sudden news could affect pricing.
💹 WTI Crude Price Update
As of Wednesday morning:
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WTI Crude (West Texas Intermediate) has just nudged above its 30-day average price of $61.42.
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Prices have been bouncing around in a $56–$64 range since the start of the month.
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This range is acting like a “price fence” for now—$56 as support, $64 as resistance.
Everyone’s watching the OPEC+ meetings today and Saturday, since those talks could tip prices up or down based on how much oil they decide to produce next.
📞 Got questions about how this affects your fuel planning or diesel budget? Contact your account manager—we’re happy to help.
