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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Donald Trump scored a win for the U.S. oil industry this weekend by deploying one of his most common strategies from his years in real estate: demand a lot, offer little and wait.
North Sea oil and gas producers should be able to weather the current crisis by delaying new investment rather than abandoning fields, with an eye to future demand recovery, Andrew Austin, CEO of London-listed RockRose Energy, said in an interview.
Royal Dutch Shell PLC agreed Thursday to set bolder carbon-emissions goals after engaging with a group of investors representing $40 trillion in assets under management.
Prime Minister Justin Trudeau says the federal government will support work in the oil and gas sector by spending $1.7 billion to help clean up “orphaned wells.”
The growing global oil and gas glut, partly caused by the coronavirus global lockdown but also due to mismanagement of the US shale sector and the OPEC+ price war fall-out, is causing mayhem in all energy sectors.
Top Freight Transportation Stories
Despite the COVID-19 crisis, Jacobs said he is bullish in late 2020 and more so on 2021. The crisis may be abating where it first started, Jacobs said, given that 90% of XPO’s Chinese operations are back up and running. XPO runs about 5 million square feet of logistics space in China, he said.
MSC’s website and MyMSC are back up and running, after a network outage at the carrier’s Geneva headquarters beginning Thursday.
As an essential service, transportation companies are free to operate as normal during the coronavirus pandemic, although for safety precautions, many have transitioned their back office to a work-at-home environment.
Top Economic Stories
U.S. President Donald Trump said on Saturday that Texas and Vermont will allow certain businesses to reopen on Monday while still observing coronavirus-related precautions and Montana will begin lifting restrictions on Friday.
President Donald Trump on Friday announced a $19 billion relief program to help U.S. farmers cope with the impact of the coronavirus, including $16 billion in direct payments to producers and mass purchases of meat, dairy, vegetables, and other products.
Industrial real-estate operators expect the disruption of consumer supply chains caused by the coronavirus pandemic to drive a new surge in warehousing demand.
Weekly unemployment jobs claims have hit record highs after record highs in the last weeks. On March 26, 3.3 million claims were announced for the previous week, the most in history to that point. On April 2, claims jumped to 6.6 million. On April 9, new claims again exceeded 6 million, and on Thursday more than 5 million claims were announced, bringing the four-week total to almost 22 million.