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
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
October 24, 2025 01:44 PM
·
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
October 24, 2025 11:05 AM
·
Bioethanol continues to gain ground as the bridge fuel connecting agriculture, aviation, and maritime industries in the global shift toward lower-carbon energy.
October 23, 2025 10:14 AM
·
Expanding bioethanol use strengthens rural economies, supports farm markets, and positions U.S. agriculture at the center of global low-carbon trade.
October 23, 2025 10:10 AM
·
“Farmers for Free Trade” warns that disaster is brewing as President Trump’s trade policy is causing farm input costs to rise even more.
October 22, 2025 12:07 PM
·
API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.
October 21, 2025 12:39 PM
·
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
October 21, 2025 11:22 AM
·
Bioethanol is becoming a global standard. For growers, that boom comes as drops in Mississippi River levels and in soybean demand occur in tandem, leaving barge space for corn and wheat.
October 20, 2025 01:32 PM
·
The government shutdown has touched nearly every sector of the ag industry since it began, and now impacts are spilling over into dairy.
October 20, 2025 12:46 PM
·
