Oil dips on COVID-19 resurgence, fears of more supply
Oil prices edged lower on Friday, dragged down by concerns that a spike in COVID-19 cases in the United States and Europe will continue to drag on demand in two of the world’s biggest fuel-consuming regions.
OPEC+, a grouping of the Organization of the Petroleum Exporting Countries and allied producers including Russia, fear a prolonged second wave of the pandemic and a jump in Libyan output could push the oil market into surplus next year, according to a confidential document seen by Reuters, a much gloomier outlook than just a month ago.
Traton, Navistar Reach Agreement on $3.7 Billion Buyout
Traton SE announced October 16 it had agreed to Navistar International Corp.’s condition of a per-share price of $44.50 and will acquire all shares it does not already own as part of a $3.7 billion purchase of the U.S. truck maker.
In its letter to Traton, Navistar’s board asked Traton to confirm that a price of $44.50 per share is a basis for finalizing the definitive agreements. Navistar’s board confirmed that an offer of $44.50 per share has the support of Navistar’s two largest shareholders.
If completed successfully, the acquisition will deepen the existing arrangements and relationships Navistar and Traton share. Navistar’s involvement with Traton has focused on a range of economies and efficiencies — including getting parts to dealers faster, procurement, systems support, electric vehicles, and new diesel powertrains.
Top Energy Stories
The world is burning through the oil supply glut that threatened to cripple the energy industry a few months ago, but spiraling coronavirus infection numbers are putting the recovery in jeopardy, the International Energy Agency said Wednesday.
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman discussed energy markets and the implementation of agreements by the oil producers group known as OPEC+, the Kremlin said in a statement on Saturday.
The U.S. energy industry is recovering more quickly than previously expected from the fall in production from the coronavirus pandemic, the Organization of the Petroleum Exporting Countries said Tuesday.
Top Freight Transportation Stories
Trucking prices are currently in the “up” stage, not yet ready to fall. In the meantime, shippers are looking for alternatives — and their eyes are on the rail yard.
Kenworth announced Wednesday the launch of the Kenworth T680E, the company’s first Class 8 battery-electric truck. The truck is available for order from Kenworth dealers in the United States and Canada and will enter production in 2021.
The North American Council for Freight Efficiency has revised its Confidence Reports on low-rolling-resistance tires to reflect industry developments since they were published in 2015. The reports include both dual configuration and wide-base tires.
J.B. Hunt said its most significant Q3 costs came from disruption caused by congestion in the truck and intermodal networks, and capacity tightness caused by labor issues, company officials told analysts during the Friday earnings call for Q3. A labor shortage of unloading personnel created delays at customer warehouses. And demand for new drivers, for replacement and growth needs, is “abnormally” high, said John Roberts, J.B. Hunt CEO and president.
Top Economic Stories
The number of Americans seeking unemployment benefits rose last week by the most in two months, to 898,000, a historically high number and evidence that layoffs remain a hindrance to the economy’s recovery from the pandemic recession.
Some parts of the U.S. economy are coming back strongly while others are still struggling because of the coronavirus pandemic, said Federal Reserve Bank of Atlanta President Raphael Bostic.
Nancy Pelosi said a stimulus package must be agreed in the next 48 hours if it is to pass before the election, as the Democratic speaker of the House of Representatives turned up the heat on senior Republicans over coronavirus aid.