Oil Steadies as Demand Uncertainty Tempers Supply Cuts
Oil prices have seen upward price pressure in the past four weeks but were steady on Monday, with holidays in Singapore, London, and New York dulling trade. In addition, there are rising concerns over demand recovery offset supply cuts.
There are concerns over travel patterns in the U.S. as lockdowns are lifted. The American Automobile Association which typically delivers a forecast of how many Americans will be on the road during the Memorial Day holiday did not provide the report this year siting uncertainty.
Another concern over the outlook for demand is the rising tensions between the U.S. and China. Relations between two of the biggest oil consumers in the world have soured since the coronavirus outbreak. Recently Beijing has made moves to impose security legislation on Hong Kong. These actions have aided the tensions between the two countries as they are at odds over Hong Kong, human rights, trade, and U.S. support for Chinese-claimed Taiwan.
April trailer orders plunge to 1990 levels
April trailer orders plummeted to the lowest level seen since 1990 — a mere 300 units. That marked a 98% drop year-over-year, according to an FTR report issued Friday. Trailer orders for the past 12 months now total 162,000 units.
With so many factories slowed or shut down, dry vans, heavily dependent on industrial production, are taking the biggest hit from the downturn. FTR confirmed that on Friday when it found the dry van segment “was hit particularly hard.” Still, with only 300 total orders in April, refrigerated van orders suffered as well, FTR reported.
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Oil retreated from the highest level in more than two months with doubts emerging over the strength of China’s economic recovery and as tensions rose between Washington and Beijing.