Crude prices fall on concerns of U.S. riots, even as OPEC meeting advanced
Oil prices fell due to concerns about riots in major U.S. cities that could staunch demand after trading higher on optimism that OPEC would extend or enhance production cuts at a meeting in June.
What began as peaceful demonstrations over the death of George Floyd, who was killed by a white Minneapolis police officer kneeling on his neck, have become a wave of outrage sweeping a politically and racially divided nation. Cities have responded with curfews and other measures to stem the violence and some retailers that were beginning to ramp up operations after curtailments due to the coronavirus have pulled back in certain locations due to concerns of looting.
West Texas Intermediate crude futures for July delivery traded at $35.25 a barrel, down 24 cents. The contract jumped $1.78, or 5.3%, on Friday.
Nikola to Broaden Electric-Truck Sales Model
Nikola and Ryder have mutually agreed to end their exclusive partnership on Nikola’s hydrogen-electric Class 8 trucks, allowing Nikola to work with major truck dealerships to sell and service Nikola trucks.
According to a news release, this means both companies will be able to explore emerging opportunities within the rapidly growing commercial transportation industry. “Nikola and Ryder view this decision positively and are both now open to business arrangements with other partners as the industry continues to evolve,” said the announcement.
Top Energy Stories
Investment in the U.S. shale sector will drop by half this year, the International Energy Agency said Wednesday, predicting a period of pain for producers, even as oil prices rally.
US crude inventories moved higher last week after a surge of imports pushed US Gulf Coast stockpiles to fresh all-time highs, US Energy Information Administration data showed Thursday.
Oil prices soared on Friday, with U.S. futures closing out May with record monthly gains, on hopes that the U.S.-China trade deal would remain intact and on falling crude production.
Global stocks fell while bonds and the euro climbed on Friday as investors turned cautious over China’s national security law on Hong Kong, but U.S. stocks pared earlier losses after President Trump did not announce any new retaliatory tariffs.
Top Freight Transportation Stories
Owner-operators and Trump accuse intermediaries of price gouging, but brokers say there is an obvious freight decline creating a supply-demand imbalance and low rates.
UPS has announced a series of updates to its services and surcharges since the COVID-19 pandemic surged demand for the carrier’s services, but this latest peak surcharge announcement from UPS is the first time surcharges will apply to domestic shipments.
With all 50 states relaxing COVID-19 shutdown orders to various extents, trucking shipments and rates are heading back up – but don’t expect a true recovery until 2021.
The often discussed driver shortage is over — at least for the time being — as a result of the COVID-19 pandemic, the deepening U.S. recession and a falloff in the amount of freight being hauled by many sectors of trucking, industry experts said.
Top Economic Stories
The European Union set out a $2 trillion coronavirus response plan, including a massive pooling of national financial resources that, if approved, would deepen the bloc’s economic union in a way that even the eurozone debt crisis failed to achieve.
The U.S. economy shrank at an even faster pace than initially estimated in the first three months of this year with economists continuing to expect a far worse outcome in the current April-June quarter.
The European Union may have no option but to impose retaliatory tariffs against the U.S. over its illegal aid to Boeing Co. in order to settle the longstanding transatlantic dispute over aircraft subsidies, according to a senior EU official.