Oil Cut Debate Set as Saudis Delay Pricing Move | Weekly News Update

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Oil Cut Debate Set as Saudis Delay Pricing Move

The Petroleum Exporting Countries (OPEC) will hold a virtual meeting on Thursday, April 9 along with other oil-producing nations including Canada and Russia. The meeting will aim to negotiate a truce in the Saudi Arabia and Russia pricing war that has caused the oil market to plummet over the past month.

Saudi Arabia has decided to delay pricing crude for May delivery as they will wait for the result of the outcome of Thursday’s meeting. However, both Saudi Arabia and Russia have stated privately that they are unlikely to cut oil output unless North American producers do the same. Alberta’s Energy Minister Sonya Savage will be joining the meeting, but it is unclear what Canada will ultimately decide. Meanwhile, the U.S. has sent mixed signals over what course of action will be taken, President Trump late Saturday threatened to impose taxes on foreign crude imports to protect the countries domestic oil industry.

President Trump spoke to Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman on Thursday. After speaking with both leaders Trump tweeted that he believed a truce could be worked out between the two countries. This single tweet sparked a record-breaking 25 percent climb in oil prices.

 

Used Class 8 Sales Drop in February

Used Class 8 truck sales fell by 15 percent in February with the average price dropping for the 10th consecutive month. This data was reported by ACT Research for the last month before the surge of the coronavirus took full effect.

The market had already seemed to have reached the bottom midyear in 2019 after a 25 percent drop in freight rates and was poised for a slow recovery coming into 2020. However, now that COVID-19 has taken a hold of the market it will inevitably extend this downward trend.

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WSJ: Texas Gets Double Punch From Coronavirus and Oil Shock

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TRANSPORT DIVE: Roadrunner thins down to asset-light LTL with sale of Stagecoach

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REUTERS: Trump invokes Defense Production Act for ventilator manufacturing

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This weekly publication is designed to highlight relevant industry news to provide professionals in the transportation, supply chain, and energy sectors with up-to-date information in a rapidly changing marketplace. This update is purely a compilation of industry news and as such, does not necessarily reflect the opinion of Breakthrough. We do not warrant or guarantee accuracy or completeness of information. For additional information, please contact us at info@breakthroughfuel.com.

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