Oil Edges Lower on Oversupply Concerns | Weekly News Update

Email Share on Linkedin

Oil edges lower on oversupply concerns as OPEC+ set to raise output

Oil prices fell on Monday on concerns about oversupply as OPEC and its allies, together known as OPEC+, are due to pull back from production cuts in August while an increase in COVID-19 cases worldwide raised fears of a slower pick-up in fuel demand.

Oil output by the Organization of the Petroleum Exporting Countries rose by over 1 million barrels per day in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal, and other members made limited progress on compliance. OPEC+ is set to step up output in August, adding about 1.5 million bpd to global supply.

Freightliner Logs 300,000 Battery-Electric Miles

Freightliner’s Innovation Fleet recently accumulated more than 300,000 miles in real-world use by customers. The 30-vehicle fleet consists of battery-electric medium- and heavy-duty trucks that are used to test the integration of this technology into large-scale commercial transportation operations.

The Freightliner Innovation Fleet, supported by the South Coast Air Quality Management District, includes 10 eM2s and 20 eCascadias testing in a variety of applications: drayage, regional and local delivery, food distribution, and parcel delivery.

 

Top Energy Stories

WSJ: Shell Swings to Historic Loss as Pandemic Devastates Oil Demand

Royal Dutch Shell swung to a heavy loss in the second quarter and warned that the outlook for oil-and-gas demand continued to be uncertain, illustrating the scale of damage Covid-19 is wreaking on the industry.

OILPRICE: Oil Rallies On Biggest Crude Inventory Draw Since 2019

U.S. crude oil inventories shed an impressive 10.6 million barrels in the week to July 24, the Energy Information Administration reported today. This compares with a build of 4.9 million barrels for the previous week. However, inventories remain 17 percent above the five-year seasonal average.

WSJ: Big Oil Companies Lose Billions, Prepare for Prolonged Pandemic

Big oil companies endured one of their worst second quarters ever and are positioning themselves for prolonged pain as the coronavirus pandemic continues to sap global demand for fossil fuels.

JWN: New U.S. permit to boost Keystone pipeline oil exports by next year

The CEO of TC Energy Corporation says the company will begin moving more oil from Western Canada into the United States by next year under a new U.S. presidential permit for the existing Keystone pipeline system.

 

Top Freight Transportation Stories

TRANSDIVE: Used truck market won’t fully recover until 2022, Ryder says

The COVID-19 pandemic caused Ryder to take a hit as it offloaded tractors and trucks. Even as it sold 6,300 vehicles in Q2, 24 percent more than the same quarter last year, revenues for used tractors were down 33 percent in Q2, compared to Q2 2019.

TRANSTOPICS: Pandemic Forces Some Fleets to Furlough Drivers, but Others Have Been Quick to Hire Them

As the coronavirus pandemic took hold, it disrupted freight demand in many segments of the economy, forcing some carriers to furlough drivers while others were quick to hire those furloughed drivers as a way to swiftly onboard experienced commercial vehicle operators.

TRANSTOPICS: Nikola’s Trevor Milton Says Future of Trucking Is Hydrogen-Based

Nikola Corp. founder and Executive Chairman Trevor Milton believes the hydrogen fuel cell technology that powers his company’s trucks can place Nikola at the forefront of global efforts to toughen clean-air rules while also providing a truck that meets the needs of commercial fleets.

CCJ: Trade groups petition Senators to leave insurance hike off highway bill

A group of more than 60 trade associations from various industries penned a letter Monday to Senate transportation committee members in opposition to including language in a highway funding bill that would increase the minimum liability coverage for trucking companies.

 

Top Economic Stories

YAHOOFINANCE: Jobless claims top 1M again in latest week as coronavirus keeps battering workers

Over a million people filed for unemployment benefits in the latest week, Labor Department data showed on Thursday, underscoring the depths of the coronavirus pandemic’s devastating impact on the U.S. economy.

CNBC: Here are five charts illustrating U.S. economic trends amid the coronavirus pandemic

States are taking differing approaches to reopening and closing during the pandemic, and the economy has been feeling the impact. More than half of states have instituted statewide mask mandates to slow the spread of the coronavirus. Some have imposed curfews and group size limits for bars and restaurants. The economic worry tied to rising coronavirus cases has impacted the health of certain areas of the economy.

REUTERS: Plunging U.S. GDP through June gives way to slow climb back in July

A record-setting drop in the U.S. economy from April to June has given way to an increasingly tepid-looking rebound as consumers appear to pull back and businesses slow rehiring, data from a variety of high-frequency sources and macro analysts indicate.

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.

Read more on these topics:

Tags: ,