Domestic Oil and Gas News: Week of June 30th, 2025
Oil Prices and Gasoline Trends
Crude Oil Prices: As of June 30, Brent crude is trading around $65.38 per barrel, reflecting a 4.6% increase over the past month but remaining approximately 21.6% lower than a year ago. tradingeconomics.com
Gasoline Prices: The national average for regular gasoline stands at $3.21 per gallon, about 23 cents lower than the same time last year. Analysts attribute this decline to robust domestic and global oil supplies, despite ongoing tensions in the Middle East. wsj.com
Domestic Production and Rig Activity
Rig Count Decline: The U.S. oil and gas rig count has decreased for the eighth consecutive week, reaching 554 rigs—the lowest since November 2021. This decline is due to reduced drilling activity amid lower oil prices and market uncertainty. energynow.com
Strategic Petroleum Reserve (SPR): The U.S. Department of Energy announced that deliveries of crude oil to the SPR, originally scheduled for January through May 2025, will be delayed until the end of the year due to site maintenance. Only 8.8 million of the planned 15.8 million barrels have been delivered so far. reuters.com
Regulatory and Policy Developments
California's Excess Profit Penalty: The California Energy Commission's Vice-chair, Siva Gunda, has recommended pausing Governor Gavin Newsom’s 2023 plan to penalize oil companies for excess profits. The recommendation suggests focusing on maintaining fuel supply and lowering prices during the state's transition away from fossil fuels, targeted for completion by 2045. apnews.com
Gulf of Mexico Lease Sale: The Trump administration has proposed a sale of oil and gas drilling rights on 80 million acres in the Gulf of Mexico, scheduled for December 10. This would be the first of three outlined in a Biden-era five-year offshore drilling program. reuters.com
Global Market and Geopolitical Factors
Strait of Hormuz Tensions: On June 22, the Iranian parliament voted to close the Strait of Hormuz in response to U.S. strikes on Iranian nuclear facilities. The decision is pending approval by Iran's Supreme National Security Council. The strait is a critical chokepoint, with approximately 20% of the world's oil supply transiting through it.en.wikipedia.org+1en.wikipedia.org+1
Iranian Gasoline Crisis: Iran is experiencing a significant gasoline supply crunch, with domestic consumption surging to unprecedented levels while production struggles to keep pace. This has led to nationwide panic buying and long queues at filling stations. en.wikipedia.org