The Weekly Fill-Up | June 16-20

June 16, 2025

The Weekly Fill Up: Energy Trends and Cooperative Insights | Week of June 10–16, 2025

At Sioux Valley Coop, we track the markets so you don’t have to. Each week, we break down global energy developments, local supply conditions, and what it all means for your operation. Here’s what we’re watching this week:

Oil Prices Rise as OPEC+ Extends Cuts into Late Summer

Crude oil is holding above $77 per barrel after OPEC+ confirmed it will maintain voluntary production cuts through at least September. The move is designed to tighten supply and support pricing as global demand gradually picks up. Refineries in the U.S. are also ramping up operations, though margins remain thin.

Local Impact: With fuel prices showing signs of firming, this may be a good time to review contract options or fill tanks ahead of peak summer activity.

Early Tropical Activity Has Energy Markets Watching the Gulf

Forecasters are monitoring a developing storm system in the southern Gulf of Mexico—the first notable formation of the 2025 hurricane season. While it’s still early, energy markets have already responded with a slight uptick in diesel futures.

Here at Home: While this system does not pose a direct threat to South Dakota, even minimal storm activity in the Gulf can influence wholesale fuel prices.

Renewable Diesel Production Increasing, Soybean Oil in High Demand

U.S. producers are expanding renewable diesel output in response to low-carbon fuel initiatives, especially in California and parts of the Midwest. This growth is increasing competition for feedstocks like soybean oil, which may influence pricing for blended fuels throughout the ag sector.

For Your Operation: If you’re using higher blend biodiesels, especially in off-road equipment or transport, monitor input pricing over the next 60 days.

U.S.–China Trade Talks Resume, With Focus on Propane and Agriculture

The U.S. and China are back at the table discussing trade, with early conversations focused on energy and agricultural goods. China remains a major buyer of American propane and soybeans, and increased purchasing interest could drive stronger export activity in Q3 and Q4.

What to Expect: Any trade acceleration with China could put upward pressure on domestic propane and grain markets. Our team will continue to track developments and communicate any notable impacts to patrons.

Steady Fuel Demand Meets a Pause in Interest Rate Movement

The Federal Reserve is holding rates steady this month as inflation eases and employment levels remain stable. At the same time, U.S. fuel demand remains solid, with summer travel and shipping season in full swing.

Sioux Valley Perspective: As consumption holds steady and inventories sit near average, fuel availability looks manageable—but planning ahead is always a smart move.

Sources

U.S. Energy Information Administration (EIA)
OPEC+ June 2025 Update
National Hurricane Center (NOAA)
Argus Media Renewable Fuels Report
Federal Reserve June Statement
USDA Trade Reports