Russia And Saudi Arabia Consider Deeper Oil Output Cuts | Weekly News Update

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Russia And Saudi Arabia Consider Deeper Oil Output Cuts

Saudi Arabia and Russia signaled they may be open to further output cuts after the latest OPEC+ deal to curb global oil supplies failed to stem crude’s downward spiral. The two nations will “continue to closely monitor the oil market and are prepared to take further measure jointly with OPEC+ and other producers if these are deemed necessary,” Russian Energy Minister Alexander Novak and his Saudi counterpart Prince Abdulaziz bin Salman said in a joint statement.

This news comes after OPEC+ agreed to remove 9.7 million barrels per day of oil from the market, with the cuts beginning in May and remaining in effect until the end of June, after which the group will start to ramp up production gradually. However, demand has continued to fall, and oil inventories are quickly on the rise because of the COVID-19 pandemic. It is understandable that the effect the OPEC+ production cut announcement had on prices was muted, as demand decline, this quarter is seen at nearly 30 million barrels per day.

 

Trailer orders fall in the month of March

Last month trailer orders followed Class 8’s in a downward trend, falling 54 percent from February and 55 percent from March 2019, according to FTR. Overall 6,500 units were ordered last month as carriers hold their purchases in check as COVID-19 continues to make the market cautious and anxious.

The totals in March include some cancelations, with the market experiencing weakness in dry vans due to some large fleets canceling orders that were spread out over the remainder of the year. Flatbed orders also suffered as manufacturing throughout the country is partially shutdown. Finally, refrigerated van orders also fell,  but not to the degree of other segments.

 

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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.

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