Ag Plus Energy Market Update

• India Shifts Away from Russian Oil: Under U.S. pressure, Indian refiners are sourcing more oil from the Middle East, Africa, and the U.S., though discounted Russian crude remains attractive.

• Trump Tariffs on Russian Oil Buyers: New U.S. tariffs target countries importing Russian oil, creating uncertainty in global trade and energy markets. This could tighten supply routes and add volatility to pricing.

• Mexico’s Fracking Push: Pemex is ramping up fracking and flaring to boost production, drawing criticism over environmental impacts while aiming for energy self-sufficiency.

Oil prices saw a modest bounce on Friday but are still on track for their largest weekly drop since late June, weighed down by trade tensions and recession fears. U.S. tariffs on multiple trade partners are adding pressure, while diplomatic rumors between Trump and Putin have injected some short-term optimism into markets. Analysts remain cautious, warning that geopolitical demands could keep volatility high.

From 2020 to 2024, Russia’s crude exports held steady overall but shifted dramatically toward Asia. Europe’s share has fallen from 51% to just 11%, with most of that volume now going to Türkiye, China, and India. China remains the top buyer, followed closely by India.

With global tensions, shifting trade alliances, and supply chain disruptions all in play, energy prices could swing quickly in the months ahead. Farmers and businesses should stay in touch with their Ag Plus energy rep to lock in pricing when opportunities arise—especially before fall harvest demand kicks in.