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The Weekly Fill-Up | July 21-25

Crude Oil Balances Between Sanctions and Supply Boosts

Crude oil prices are hovering near $70 per barrel, supported by geopolitical factors and rising global exports. The European Union has introduced a new round of sanctions on Russian refined oil products, while Saudi Arabia continues to increase its exports, putting downward pressure on prices.

What This Means for You: While the market appears stable for now, sudden changes in policy or trade disruptions could cause rapid shifts. Locking in pricing or reviewing your fuel plan now can help protect your operation from volatility.

U.S. Inventory Builds Support Supply Confidence

The latest data shows U.S. commercial crude inventories increased by approximately 7 million barrels, indicating solid refinery activity and strong domestic supply. U.S. crude production is holding near 13.4 million barrels per day, with forecasts showing a slight decrease by early 2026.

Sioux Valley Perspective: With inventories on the rise and production steady, fuel availability remains reliable. Our delivery routes are operating at full capacity, and we’re well positioned to support your fueling needs.

Biodiesel Costs Pressured by Soybean Oil Demand

Soybean oil remains a key feedstock for biodiesel and renewable diesel production. According to USDA projections, usage will climb to 15.5 billion pounds for the 2025–26 season, driven by continued demand for low-carbon fuels.

Local Outlook: If you operate equipment using biodiesel blends, keep an eye on rising input costs. We’re monitoring pricing closely and will provide updates as the season progresses.

Heat Builds, But Storm Activity Stays Quiet—For Now

A major heatwave is building across the Gulf region, but tropical storm activity remains minimal. However, with tensions continuing in the Middle East—especially around the Strait of Hormuz—market watchers remain cautious.

Planning Note: While there are no immediate concerns for fuel delivery disruptions, the potential for sudden volatility always exists. It’s wise to stay flexible and prepared.

Final Thoughts

This week’s market update reflects a temporary calm across much of the energy landscape. Crude prices are range-bound, inventories are healthy, and export trends are mostly manageable. Still, with rising biodiesel input costs and global trade uncertainties, we’re watching closely and adjusting delivery plans to match.

If you have questions about contract options, tank monitoring, or planning ahead for harvest or heating season, don’t hesitate to reach out to your Sioux Valley Coop energy team. We’re here to keep you powered locally.


Sources:

  • U.S. Energy Information Administration (EIA)
  • Reuters Energy Reports
  • USDA July WASDE
  • National Hurricane Center (NOAA)
  • Biomass Magazine
  • Fuel Market News