🔍 Energy Insights – What Farmers Need to Know Today
🛢️ U.S. Shale Faces Price Pressure
As oil-producing countries overseas (like OPEC+) talk about pumping out more oil, U.S. shale producers are watching prices closely. According to recent data from the Dallas Federal Reserve, American oil companies need oil prices around $65 a barrel to make a profit on drilling new wells.
This week, ConocoPhillips CEO Ryan Lance said that if oil stays around $60 or drops into the $50s, shale production in the U.S. could slow down or even decline. There’s a lot of uncertainty, and while the industry is in better financial shape than it was during past downturns, many companies may scale back operations if prices stay low.
🌍 President Trump Proposes 50% EU Tariff
President Trump announced he’s recommending a 50% tariff on goods from the European Union (EU) starting June 1. He said the EU has been “difficult to deal with on trade,” and that negotiations aren’t going anywhere. This announcement—combined with talks of more oil output from OPEC+—is putting downward pressure on global oil prices today.
🇮🇳 India’s Oil Demand Dips
India, the third-largest oil consumer in the world, cut back on oil imports in April, dropping 6.5% from the month before. Fuel demand was also down 3.7%. While April’s dip may be temporary, analysts still expect India to lead global demand growth in the coming years, so overall import levels are likely to climb again soon.
📉 Market Watch: Prices Slip for 2nd Day
Oil prices are trending lower for the second day in a row. If this continues, it could be the first weekly price drop in three weeks. The combination of:
-
Potential OPEC+ production hikes
-
New EU tariffs
…is pushing prices down toward the $60-per-barrel support level.
This matters because $60 is a tipping point—if prices drop much lower, U.S. producers may cut back, affecting long-term supply and prices at the pump.
🌀 2025 Hurricane Forecast: What’s Coming
Meteorologists are calling for an active hurricane season in 2025, with 13 to 18 named storms expected (average is 14). Out of those, 3 to 6 could directly impact the U.S.—particularly the Gulf Coast, where more than half of the country’s oil refining capacity is located.
Why it matters:
⚠️ If a major storm hits Louisiana or Texas, we could see:
-
Oil production paused or shut down
-
Refineries damaged or closed
-
Fuel prices jump due to supply disruptions
Even one major storm can take over 1 million barrels per day offline—so keep an eye on storm forecasts as the season kicks off.
đź“ž Questions about how this impacts your fuel planning or diesel costs? Your account manager is ready to help. 800.342.7360
