NASHVILLE, TENN. (RFD NEWS) — Fuel costs — and farm input expenses — may ease over the next two years as global oil supplies continue to outpace demand. The U.S. Energy Information Administration expects Brent crude to average about $58 per barrel in 2026 and $53 in 2027, down from roughly $69 in 2025 as inventories steadily grow.
The agency says petroleum production is expanding faster than consumption worldwide. Higher output targets from OPEC+ and rising production in Brazil, Guyana, and Argentina are adding barrels to the market while demand growth slows. At the same time, China is stockpiling crude oil, absorbing some supply but still contributing to rising global inventories.
Stocks are building in both harder-to-track non-OECD locations and traditional commercial storage across developed economies. As storage fills, the higher cost of holding excess crude typically pressures prices lower and slows future production growth.
For agriculture, the outlook indicates moderating diesel and fertilizer energy costs, but weaker ethanol margins if gasoline demand remains soft.
Farm-Level Takeaway: Lower oil prices may trim input costs but pressure biofuel demand.
Tony St. James, RFD NEWS Markets Specialist
RealAg Radio host Shaun Haney explains how conflict in the Middle East is affecting spring planting as farmers navigate the evolving situation.
March 23, 2026 01:35 PM
·
The Mosaic Company’s Keith Byerly shares smart input investment strategies, fertilizer considerations, and ways growers can manage risk heading into the 2026 growing season.
March 23, 2026 12:56 PM
·
NCGA Chief Economist Krista Swanson discusses the evolving role of ethanol in the current energy crisis, opportunities for expanding corn discusses the evolving role of ethanol in the current marketdemand, and the industry’s outlook moving forward.
March 23, 2026 12:04 PM
·
Nebraska Cattle Rancher Joe Van Newkirk shares his firsthand insight on devastating wildfires in the Sandhills, discusses challenges facing ranchers, long-term calf health concerns, and the recovery efforts underway.
March 20, 2026 01:53 PM
·
Nebraska Cattlemen’s Association President Craig Uden shares the latest on Nebraska wildfire conditions, discusses challenges facing producers, and outlines relief efforts underway.
March 20, 2026 01:21 PM
·
Energy risks could reshape global ag trade flows.
March 20, 2026 08:00 AM
·
