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🛢️ Weekly Energy Update – Fuel, Oil & Market Trends for NW Iowa

🌍 OPEC+ Might Boost Oil Production Even More

There’s talk that OPEC+ (the group of top oil-producing countries) could increase oil production again in July—and possibly by more than the 411,000 barrels per day added in May and June.

Eight of the group’s countries are already producing more than originally planned, which has pushed oil prices down. That’s sparked strategic responses from major players like Saudi Arabia and Russia.

Some OPEC+ members want to go even bigger, and with Kazakhstan refusing to cut production, tensions are growing. All eyes are on Saturday’s meeting to see if a larger increase is agreed upon.

🛢️ North Dakota Gives Oil Producers More Time to Finish Wells

With oil prices hovering around $60 a barrel (a bit low for many companies to make a profit), North Dakota is giving oil producers more breathing room.

Before, drillers had one year to complete or plug their wells. Now, they’ll have until spring 2027, as long as they monitor well pressure every quarter.

This move is meant to help producers keep operations going without being forced to rush drilling projects or shut things down early. It’s a smart way for the state to support jobs and energy production, even when prices are challenging.

🧾 U.S. Oil Inventories Fall as Exports Climb

Last week, U.S. crude inventories dropped by 2.8 million barrels, even though experts expected a small increase. Here’s why:

• Crude exports surged to 4.3 million barrels per day, up nearly 800,000 bpd.

• Gasoline and diesel (distillate) inventories also dropped, with strong demand ahead of Memorial Day travel.

• Imports from Nigeria also spiked, hitting their highest level since 2019 after a short-term shutdown at Nigeria’s Dangote refinery.

All these factors contributed to a tightening supply—at least for now.

📉 Market Overview: Prices Slide Again

Oil prices started Friday lower, and it looks like we’re headed for the second week in a row of falling prices. Why?

• OPEC+ is expected to increase production, possibly more than previous levels.

• Some countries may have already pre-agreed, so markets are adjusting early.

• A global surplus of about 2.2 million barrels per day is also putting downward pressure on prices.

• To top it off, U.S. tariffs are back in the mix—a court just reinstated some Trump-era tariffs, creating even more uncertainty for the global economy.

⛽ U.S. Gasoline Demand Hits 5-Year High

Good news on the gas front: Americans used 9.4 million barrels of gasoline per day last week, which is the highest Memorial Day week demand in 5 years!

🚗 For context:

• Over 9 million barrels/day is considered strong demand.

• This could signal a busy summer driving season ahead.

📉 But keep in mind:

• Gasoline inventories in both the U.S. overall and the Midwest (PADD 2 region) are lower than this time last year.

• Strong demand + tight supply = something to watch for potential price bumps.

📞 Want help planning for fuel needs this summer? Reach out to your account manager—we’re always here to help.