Saudi Arabia Seeks Market Stabilization | Weekly News Update

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Saudi Arabia Calls for Market Stabilization

Despite an overall downward week for oil markets, Friday saw prices start to gain once more on news that Saudi Arabia is reaching out to other oil-producing nations in an attempt to stabilize prices. Earlier in the week, oil had continued to plummet as the US-China trade war faced the possibility of escalating into a currency war, and as the International Energy Agency (IEA) announced that oil demand growth has lowered to levels not seen since the 2008 financial crisis. Despite these problematic headwinds, following the news of Saudi Arabia’s plans Brent rose by 2 percent to $58.53 per barrel, and WTI rose by 3.7 percent to $54.50.

As the de-facto leader and largest oil-producing member of OPEC+, Saudi Arabia stated that it will be keeping exports below 7 million barrels per day in September, as well as allocate less crude volume than is demanded by its customers to stabilize prices. Additionally, state-run oil company Saudi Aramco will provide customers across all regions with 700,000 barrels fewer than requested. Currently cutting more than they are required to under the existing OPEC+ agreement, Saudi Arabia also reiterated the importance of OPEC+ meetings taking place in Abu Dhabi next month in evaluating the success of the group’s production-cutting strategy going forward.

Class 8 Truck Orders Fall to Lowest Level Since 2010

Despite a strong rebound in truck buying in 2018, orders for Class 8 trucks fell in July to their lowest level since 2010. According to FTR, a transportation research group, heavy-duty truck orders fell to 9,800 units in July, representing a decrease of over 82 percent from this time last year. In contrast, 52,000 new units were ordered in July and August of 2018.

While it is common for truck order figures to decline in summer months, this year’s trend offers a stark contrast to last year’s market, where trucking companies benefiting from a tight-capacity market had more funds available to invest in new vehicles. This year, however, indications of weakness in the manufacturing sector have reduced demand to move freight, and this dynamic may persist as global trade uncertainty between the US and China continues.

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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

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