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
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.
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.
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.
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
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.
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.
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.
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
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.
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.
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.