OPEC, Allies Set to Ease Oil Cuts, Anticipating Demand Recovery
An alliance of crude producers led by Saudi Arabia is pushing OPEC and its allies to increase oil production starting in August, officials in the group said, amid signs that demand is returning to normal levels following coronavirus-related lockdowns.
Key members of the Organization of the Petroleum Exporting Countries and its Russia-led allies are set to meet via web conference Wednesday to debate the group’s current and future production. It seems that Saudi Arabia and most other countries in the coalition support a loosening of the curbs. Under a Saudi proposal, OPEC would relax its current curbs by 2 million barrels a day to 7.7 million barrels per day.
Truck orders begin to climb as freight volumes improve
North American Class 8 net orders last month reached 15,500 units, according to preliminary data released Friday by FTR, cracking the 10,000-unit mark for the first time since February. Month-over-month June was up 130 percent from May and was up 20 percent year-over-year.
As the economy holds its ground and freight markets recover from pandemic-related restrictions, fleet confidence is improving gradually. However, June’s order volume may not be sustainable in July as some larger fleet order may be difficult to replicate in the short term. FTR Vice President of Commercial Vehicles Don Ake does expect order volume to exceed the 10,000-unit mark throughout the summer as friend volumes continue to improve.
Top Energy Stories
The International Energy Agency (IEA) bumped up its 2020 oil demand forecast on Friday but warned that the spread of COVID-19 posed a risk to the outlook.
The Supreme Court on Monday rejected a request from the Trump administration to allow construction of parts of the Keystone XL oil pipeline that had been blocked by a federal judge in Montana. But the court temporarily revived a permit program that would let other oil and gas pipelines cross waterways after only modest scrutiny from regulators.
The worst effects of the coronavirus on global oil demand have passed but will continue to echo as the market slowly recovers in the second half of 2020, the International Energy Agency said Friday.
Top Freight Transportation Stories
Fleet confidence is improving as trucking firms see the green shoots in the economy. The economy added 4.8 million jobs overall in June, and the unemployment rate dropped to 11.1%, according to the Labor Department. Consumer spending on household goods rose 8.2% in May, according to the U.S. Bureau of Economic Analysis.
House Democrats’ proposed allocation for the Federal Motor Carrier Safety Administration would be a $202 million increase from the fiscal 2020 enacted level. The proposed funding would amount to $179 million more than the president’s current request, which was a nearly 4% increase from the previous year.
YRC Worldwide Inc.’s lenders gave the troubled trucker a three-and-a-half-year reprieve on its heavy debt load as the company prepares for a $700 million federal bailout package.
Top Economic Stories
Treasury Secretary Steven Mnuchin said Thursday the Trump administration is working with the Senate to pass a new bill for coronavirus-related economic aid by the end of July, as enhanced unemployment benefits near expiration.
The Federal Reserve Bank of Atlanta projects that GDP dropped a record –35.2% in the second quarter. Put simply: No event in American history has wrecked the U.S. economy faster than the pandemic-driven recession, or pancession for short.
A strong economic recovery depends on effective and sustained containment of Covid-19, economists said in a new Wall Street Journal survey, as the U.S. surpassed 3 million confirmed coronavirus cases.
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 email@example.com.