Saudis Consider Canceling OPEC Plans to Boost Output
Saudi Arabia is considering canceling OPEC plans for an oil output hike early next year, senior Saudi oil advisers said, as Covid-19 cases in many parts of the world rise and the expected return of Libyan crude threatens to swell global supplies.
The debate inside Saudi Arabia comes amid weaker-than-expected oil demand, even as many countries have reopened swaths of their economies after a near-total shutdown in the spring and summer. In recent weeks, though, governments in the U.S., Europe, and elsewhere have enacted or are reviewing fresh restrictions to help curb a new period of rising cases in many places.
Consumer demand pushes up small LTL shipment volumes, TL spot rates
ACT Research’s spot leading indicator, derived from survey data, signaled rates will be up by about 30 percent year-over-year over the next few months, according to Tim Denoyer, ACT Research vice president, and senior analyst, speaking during a webinar in mid-September.
The surge in rates is occurring even though volumes in August were 3 percent lower than August 2019, according to DAT’s September market report. DAT analysts, writing about the paradox, said the reason is different sectors experienced “dramatically different situations.” Retail and consumer goods had 10 percent overall volume increases, while industrial and some other sectors saw 10% decreases, DAT analysts wrote.
Top Energy Stories
Demand for transportation fuels remained muted in the third quarter amid continued coronavirus pandemic concerns and economic pressures, while refinery run cuts have provided some balance to the markets.
The country that a decade ago was the largest producer in Latin America, earning about $90 billion a year from oil exports, is expected to net about $2.3 billion by this year’s end — less than the aggregate amount that Venezuelan migrants who fled the country’s economic devastation will send back home to support their families, according to Pilar Navarro, a Caracas-based economist.
US Gulf of Mexico offshore oil and gas producers continued shutting in wells and evacuating crews on Oct. 6 as Hurricane Delta strengthened into a major Category 4 hurricane en route to a projected Louisiana landfall this weekend.
Oil prices fell on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta.
Top Freight Transportation Stories
Class 8 truck orders point to confidence in the market and the need to scale up capacity in anticipation of freight demand. Fleets buy trucks to replace the older models in their inventory, or to aid expansion.
There is continued competition in the Class 8 market between hydrogen fuel-cell trucks and battery-electric trucks, a rivalry that can be traced back to April 2019, at the Advanced Clean Transportation Expo in Long Beach, California. That’s where Roger Nielsen, the CEO and president of the largest U.S. truck maker, Daimler Trucks, said his firm would focus on battery-electric vehicles for future development.
Capacity on the Transpacific for Golden Week was “unprecedented,” according to Sea-Intelligence. Available space exceeded the next highest capacity year, 2018, by more than 150,000 TEUs.
Top Economic Stories
The oil, natural gas, and chemicals industry in the U.S. eliminated 107,000 jobs between March and August of this year, according to a report released Monday by Deloitte on the future of work in the sector. It’s the “fastest rate of layoffs in the industry’s history,” the report says—a remarkable pace even for a sector famed for its sky-high booms and punishing busts.
The U.S. services sector, where most Americans work, grew for a fourth consecutive month in September as the country attempts to re-open from earlier COVID-19 shutdowns.
The American Society of Civil Engineers recently announced $4.1 trillion from 2020 through 2039 is needed to sustain the country’s surface transportation. The group observed, “Chronic underinvestment in our surface transportation infrastructure bears severe economic consequences. Subpar roadway conditions and transit that does not meet a state of good repair produces direct costs to businesses and households, as well as to the national economy.
President Donald Trump and House Speaker Nancy Pelosi blamed each other for a lack of progress on a new plan to support the U.S. economy, while a senior White House aide said he expects talks to continue and a Fed official said fiscal help is sorely needed.