Goldman Sachs Raises Global Demand Estimate on Oil | Weekly News Update

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Goldman Sachs Raises Global Demand Estimate on Oil as Demand Improves

Goldman Sachs stated that the risk of a sharp pull-back in oil prices has decreased as the rebalancing of the crude market gathers pace. As the oil markets have been aided by a gradual lifting of coronavirus lockdowns and a faster-than-expected fall in output.

The Wall-Street bank raised its May global demand estimate by 1.4 million barrels per day (bpd), but still sees a decline of 16 million bpd from pre-COVID levels. However, in a note dated May 13 the bank stated that recovering demand and lower output would push the global oil market into deficit in June.

Goldman expects oil prices to have limited upside in the coming months, citing a big inventory overhang and the ability for shut-in production in North America to restart if prices rally further.

 

FMCSA Publishes Final HOS Rule

The Federal Motor Carrier Safety Administration published its long-awaited final rule on changes to hours-of-service regulations to increase flexibility for truck drivers.

The final rule will allow more flexibility for the 30-minute rest break rule by requiring a break after eight hours of consecutive driving and allowing the break to be satisfied by a driver using “on-duty, not driving” status, rather than “off-duty” status.

The rule also will modify the split sleeper berth exception to allow drivers to divide their required 10 hours off duty into two periods: an 8/2 split or a 7/3 split. Neither period would count against the driver’s 14-hour driving window. Additionally, the rule modifies the adverse driving conditions exception by extending by two hours the maximum window during which driving is permitted.

The final revision involves changing the short-haul exception available to certain drivers by lengthening the drivers’ maximum on-duty period from 12 to 14 hours and extending the distance limit within which the driver may operate from 100 air miles to 150 air miles.

 

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