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The Weekly Fill-Up | June 9-14

The Weekly Fill-Up: Global Trends and Local Impacts

As your reliable energy partner, Sioux Valley Coop is committed to keeping you informed on developments that impact your operations—whether that’s across the globe or right here in the Dakotas. Here’s what you need to know this week:

Fuel Prices Hold Steady as Hurricane Season Begins

U.S. diesel and gasoline prices have held relatively steady this week, supported by solid inventory levels and consistent refinery output. However, the first tropical system of the Atlantic hurricane season is forming near the Caribbean, prompting attention from Gulf Coast energy markets.

The threat of even minor disruptions to refining capacity or shipping lanes could quickly affect pricing and availability, especially in the diesel market.

Local Impact: This is an ideal time to top off tanks, especially for bulk diesel and propane.

OPEC+ Extends Production Cuts Through the Third Quarter

OPEC and its allies announced this past weekend that voluntary production cuts—totaling approximately 2.2 million barrels per day—will be extended through at least September. The group’s decision is intended to support crude oil prices, which have hovered between $72 and $78 per barrel in recent weeks.

Although global demand growth has been slower than expected, the cartel’s actions signal a commitment to preventing prices from dipping further.

Sioux Valley Perspective: If you are watching diesel or gasoline trends, expect some upward pressure on prices in the coming weeks, particularly if U.S. summer travel demand increases alongside these tightened supply measures.

U.S.–China Trade Dialogue Centers on Agriculture and Energy

Officials from the United States and China resumed trade negotiations last week with discussions focused on agricultural commodities and U.S. energy exports. China remains one of the top importers of U.S. soybeans and is expanding purchases of American propane and liquefied natural gas.

While no formal agreements have been finalized, market analysts are interpreting the meetings as a positive step toward improved trade conditions.

What It Means for You: If you are involved in agriculture or propane purchasing, trade outcomes with China could affect crop prices and energy demand in the months ahead. We are monitoring developments closely.

Renewable Diesel Growth Begins to Influence Feedstock Markets

Producers across the Midwest and West Coast are ramping up renewable diesel production ahead of the fall harvest season. This trend has led to increased demand for soy oil and other feedstocks, driving up input costs and tightening supplies.

As a result, there may be an impact on bio-blended diesel prices, especially for high-soy formulations commonly used in renewable fuel mixes.

Action Step: If your operation relies on bio blends, consider securing product or pricing options early. This may help offset future supply chain stress and possible premium pricing during late summer and early fall.

Economic Update: Fed Rate Hold Expected as Fuel Demand Remains Strong

The Federal Reserve is expected to keep interest rates unchanged in June as inflation continues to ease and employment data remains stable. Consumer demand for summer travel and fuel remains high, with gasoline consumption tracking slightly ahead of last year’s levels.

This combination of steady economic activity and seasonal fuel demand may put additional pressure on fuel supply logistics, especially in rural and agricultural areas.

Planning Tip: Our team is available to assist with bulk fuel and propane delivery planning. Early coordination will help ensure you are well-prepared for busy July travel periods and summer fieldwork.

 

Sources:

  1. U.S. Energy Information Administration (EIA) – Weekly Petroleum Status Report
  2. Reuters – “OPEC+ to Extend Voluntary Oil Output Cuts Through Q3”
  3. Bloomberg – “China Eyes More U.S. Energy Imports Amid Renewed Trade Talks”
  4. Argus Media – “Renewable Diesel Demand Impacts Soybean Oil Markets”
  5. Federal Reserve – June 2025 Meeting Preview
  6. NOAA – 2025 Atlantic Hurricane Season Outlook