Saudis Weigh Breaking Oil Alliance with Russia | Weekly News Update

Email Share on Linkedin

Saudis Weigh Breaking Oil Alliance with Russia as Virus Crimps Demand

Saudi Arabia, the de facto leader of the Organization of Petroleum Exporting Countries (OPEC), is considering ending the four-year oil production alliance with Russia.  This comes as the countries of OPEC and Russia could not agree on a further production cut due to the coronavirus hampering global oil demand.  The cartel held emergency meetings in February but failed to come to an agreement, because Russia wanted to take a wait-and-see approach before cutting production further.

Furthermore, Saudi Arabia, Kuwait, and the United Arab Emirates (UAE)—which collectively represent over half of OPEC’s production capacity—are holding talks this week to discuss a possible output cut between the three countries of 300,000 barrels per day.  This is half of the cut proposal that Russia refused.  The OPEC group and the supporting countries (OPEC+) are all scheduled to meet next week to discuss a wholistic production cut for the broader group.

 

Daimler Trucks Launches Global Electric-Truck Charging Initiative

The E-Mobility Group—an electric vehicle initiative a part of Daimler Trucks—launched a global program to set up charging infrastructure for battery electric commercial trucks.  Daimler says the plan is to build a “network for shared infrastructure solutions,” meaning other players will be part of the initiative, including fleets, power grid operators, energy suppliers, charging hardware manufacturers, and charging software providers.  The program will begin to establish depot based charging or charging stations located at truck terminals or shops.  Infrastructure will be built starting in the U.S. and Europe, with Japan being the next market to follow.

 

Top Energy Stories

WSJ: Saudis Weigh Breaking Oil Alliance with Russia as Virus Crimps Demand

Saudi Arabia is considering a break from its four-year oil-production alliance with Russia, according to people familiar with the matter, as China’s coronavirus outbreak contributes to a drop in global oil demand.

WSJ: China’s Shipping Nears a Standstill Amid Coronavirus Disruption

Some of the lowest prices for crude oil and natural gas in years are saving many Americans money.  With analysts projecting ample supplies of natural gas ahead, futures prices earlier this month fell to their lowest level in almost four years. Meanwhile, with oil also falling, the average price of a regular gallon of gasoline recently dropped below $2.40 to its lowest point in a year.

 

Top Freight Transportation Stories

WSJ: China’s Shipping Nears a Standstill Amid Coronavirus Disruption

Shipping volumes out of China are plummeting as the impact of the coronavirus outbreak takes a deeper toll on industrial production, and ocean carriers are bracing for financial blows from the diminished output.

JOC: Coronavirus creating unprecedented container shipping disruption

The unprecedented scale of the disruption, which forced carriers to blank 46 percent of capacity in the Asia-Europe trade, according to Alphaliner, left longtime players such as forwarder Expeditors International, who have seen it all, at a loss for words. “Over our 40-year history, we have experienced many events that have disrupted supply chains. We have not, however, experienced a situation where manufacturing capability has been shut down or severely hampered to such an extent.”

HDT: Daimler Trucks Launches Global Electric-Truck Charging Initiative

Shipping volumes out of China are plummeting as the impact of the coronavirus outbreak takes a deeper toll on industrial production, and ocean carriers are bracing for financial blows from the diminished output.

Relatedly

 

Top Economic Stories

Bloomberg: Fears Grow of Coronavirus Spread as Cases Spike Beyong China

Concerns that the coronavirus outbreak is becoming a global pandemic are rising as new centers of infection outside China emerge. The mortality rate from the pneumonia-causing illness appears to be much higher in Iran and Italy, hinting at many undiscovered cases of infection.

WSJ: The U.S.’s Next Trade War? As China Clash Cools, Conflict With India Looms

You may have missed it amid headlines of the U.S. trade war with China, but a low-intensity trade conflict with Asia’s other emerging giant is also smoldering. It began a year ago when the U.S. stripped India of special low-tariff status over claims it discriminated against American companies. India responded by implementing tariffs it had previously threatened over U.S. steel duties.

WSJ: Fed Minutes Show Comfort with Economy, Rate Stance Last Month

Federal Reserve officials signaled growing optimism about the U.S. economy last month, before the coronavirus outbreak in China began to cloud prospects of firmer global growth in 2020.

 

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.

Read more on these topics:

Tags: ,