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The Weekly Fill-Up: Fuel, Energy, and Cooperative Insights | June 23-27

Each week, Sioux Valley Coop delivers a snapshot of the energy market landscape to keep our patrons informed and prepared. From global oil trends to local delivery planning, here’s what we’re seeing this week:


1. Oil Prices Edge Higher on Strong Demand and Shrinking Inventories

Crude oil prices are pushing toward the $79 mark as U.S. demand for refined products continues to rise. According to the EIA, gasoline and diesel inventories both saw draws last week, reflecting strong summer travel and agricultural activity across key regions.

Refinery utilization remains high, but some facilities are entering scheduled maintenance windows, which could tighten supply further in the coming weeks.

What to Watch: Rising demand and tighter supply are creating upward pressure on fuel prices. It’s a good time to review fuel budgets and consider contract options with our team to lock in summer pricing.


2. Storm Activity Builds in the Gulf, Nudging Fuel Markets

The National Hurricane Center is tracking two systems with potential for development in the Gulf of Mexico and Atlantic basin. While neither system is expected to impact the Midwest, their presence is already causing volatility in diesel and gasoline futures.

In Our Area: These early-season storms are reminders of how quickly weather can influence energy pricing, even from afar. At Sioux Valley Coop, we monitor national conditions closely to adjust supply strategies as needed. Our delivery scheduling is based on tank levels and route efficiency, so your supply remains dependable regardless of market movement.


3. Propane Market Stays Quiet for Now, But Export Demand Looms

Propane pricing has remained relatively steady this month, supported by healthy domestic inventories. However, international demand is expected to pick up in late summer as countries begin building winter reserves, especially in Asia.

Local Perspective: Thanks to our monitored tank system, Sioux Valley Coop knows when your propane levels are low and delivers based on route efficiency and real-time usage. If international markets tighten, securing fall and winter pricing in advance could provide cost certainty for your home, farm, or business.


4. Renewable Fuel Credits Spike, Boosting Cost of Biodiesel Blends

Renewable Identification Numbers (RINs) used to track compliance under the Renewable Fuel Standard have increased sharply this week. This is pushing up the cost of biodiesel and renewable diesel across the Midwest, especially for high-blend fuels.

What It Means for You: If your operation runs biodiesel blends, expect potential price swings over the next few weeks. Reach out to your Sioux Valley Coop rep for current blend pricing and fuel alternatives if needed.


5. Ag Exports Show Strength, Helping Support Energy Demand

U.S. agricultural exports, particularly soybeans and corn, are showing signs of strength as trade flows with Mexico, Japan, and the European Union increase. Strong ag shipping volumes help boost freight fuel usage, which supports diesel demand nationally.

Regional Impact: As ag markets pick up, so does local diesel consumption. Our bulk delivery team is keeping a close eye on usage trends to make sure deliveries are timely and efficient across our service territory.


Sources

  • U.S. Energy Information Administration (EIA)
  • National Hurricane Center (NOAA)
  • Propane Education & Research Council
  • USDA Weekly Export Report
  • Argus Renewable Fuel Index
  • CME Group RINs Market Data