NASHVILLE, TENN. (RFD NEWS) — Energy markets are sending conflicting signals to agriculture, with lower long-term fuel prices but continued short-term volatility in heating and fertilizer inputs.
The U.S. Energy Information Administration’s February Short-Term Energy Outlook (PDF Version) projects Brent crude oil averaging about $58 per barrel in 2026 and $53 in 2027 as global production continues to outpace demand and inventories build. Despite recent geopolitical disruptions, expanding output worldwide is expected to keep diesel and fuel costs generally softer over time.
Natural gas tells a different story in the near term. The Henry Hub price averaged $7.72 per MMBtu in January after winter weather tightened supplies. Storage levels are now projected to end winter about 8 percent lower than previously expected. Prices should moderate later as drilling increases, with averages near $4.30 this year and $4.40 in 2027.
U.S. natural gas production is forecast to grow 2 percent in 2026, while rising solar generation and modest coal use help meet expanding electricity demand from industry and data centers.
Lower propane prices are also expected as higher gas production boosts supply.
Jim Matheson, CEO of the National Rural Electric Cooperative Association, provides new updates on winter storm impacts and the outlook for rural power reliability.
January 30, 2026 02:59 PM
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Strong rail demand and higher fuel costs raise transportation risk even as barge and export flows stabilize.
January 30, 2026 02:21 PM
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The federal government’s status is far from the only factor moving the markets on Friday. Two critical reports released today on producer inflation and the status of the U.S. cattle herd are also top of mind.
January 30, 2026 12:51 PM
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Record milk output looks strong today, but shrinking replacement numbers mean future supply adjustments could be faster and more volatile.
January 30, 2026 11:44 AM
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Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
January 30, 2026 08:00 AM
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Strong blending demand continues to support ethanol use even as production and exports fluctuate.
January 30, 2026 07:00 AM
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Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
January 29, 2026 12:44 PM
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Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.
January 29, 2026 08:00 AM
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Strong White House backing supports ethanol demand, but timing now hinges on Congress resolving procedural — at the same time as they push toward a spending bill to avert another federal government shutdown.
January 28, 2026 11:35 AM
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