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
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.
January 06, 2026 01:04 PM
·
Last year was a busy year for pesticide litigation in the United States. At No. 10, it kicks off RFD-TV Legal Expert Roger McEowen’s list of the “Top 10” Agricultural Law and Tax Developments of 2025.
January 06, 2026 11:06 AM
·
Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
January 05, 2026 03:00 PM
·
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
January 05, 2026 02:49 PM
·
Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
December 25, 2025 12:00 PM
·
Record pace corn exports are helping stabilize prices despite softer global grain production and ongoing supply competition.
December 25, 2025 06:00 AM
·
