Red Hot Oil. The Energy Report 08/08/2025

The AP reported that President Donald Trump said Thursday that he would meet with Russian President Vladimir Putin even if the Russian leader won’t meet with Ukrainian President Volodymyr Zelensky, in comments that suggested the U.S. and Russia could soon hold a summit. The headline sunk oil and is again at the low part of the endless oil trading range.

Behind the scene, the heating oil crack is cracking again surging as is the continuing shortage of diesel globally. The situation could deteriorate if Russian oil is sanctioned, and international commitments to stop purchases may also have a major impact. Despite this, China and India are likely to continue their imports, leaving the outcome uncertain.

Diesel demand in 2025 has been stronger than the global economic pessimists predicted, fueled by thriving industries, farming, and new regulations. With refinery shutdowns and maintenance limiting supply, inventories remain tight, and prices elevated, especially in the U.S. and Europe. Asian refineries may help ease the crunch, but markets are still sensitive to disruptions, showing just how vital diesel is to the global economy. Analysts are learning that demand and supply challenges make this energy landscape more complex than ever.

Strong global economic growth is boosting demand in manufacturing and freight sectors, leading to higher diesel consumption. The International Energy Agency (IEA) projects a 95,000 barrels per day increase in diesel and gasoil demand this year, reversing last year’s decline. This growth is driven by industrial recovery, particularly in the U.S. and Asia, with the U.S. manufacturing index rising to 49.1 in January 2025, indicating near-expansion and increased diesel use.

President Trump continues to want to make US energy great again. It’s a major priority to make the United States a major global hub for energy and is expanding our reach with making big deals for liquefied natural gas not only today but in the future.

Energy Intelligence points out that recent trade deals with the EU, Japan, and South Korea are set to boost US LNG exports, reinforcing America’s position as the top exporter. These countries secured lower tariffs in exchange for pledges to invest and buy US energy, though the exact terms remain unclear. Despite possible shortfalls in actual purchases, all sides are motivated to increase US LNG imports to maintain strong relations with the Trump administration.

For natural gas we are bouncing and staying fixed on our Fox Weather Apps . Fox Weather warns that the Atlantic is heating up during the prime time for Atlantic Hurricanes. Fox Weather reports that Invest 96L could become tropical depression in Atlantic while odds wane for Southeast coastal storm.

A budding tropical disturbance in the central Atlantic Ocean was designated Invest 96L by the National Hurricane Center on Wednesday, as it enters favorable conditions for gradual development in the next week. The NHC said Invest 96L is moving west-northwestward to northwestward, attempting to push through an area of dry, dusty air. Most forecast models suggest the system will continue on a northward track into the open central Atlantic and remain relatively weak. However, some development is still possible. The NHC currently gives the system a medium chance of becoming a tropical depression or tropical storm in the coming days.

It’s another tropical wave behind 96L coming off the west coast of Africa in the next few days that the FOX Forecast Center says will get plenty of attention over the coming weeks. Download the Fox Weather app.

To keep up with the latest moves stay tuned to the Fox Business Network because that’s the only network in America that’s truly invested in you.

You can also get answers to all your futures markets questions by just calling 888-264-5665. You can also email me – Phil Flynn – at pflynn@pricegroup.com and make sure that you get signed up for my Daily Trade Levels. It’s also a great time to open up your trading account—do that today.