Oil prices drop as rising U.S. coronavirus cases stoke fears of weak fuel demand
Oil prices felt downward pressure Monday, with U.S. oil dropping more than 2 percent. This was a result of a spike in new coronavirus cases in the United States raising concerns over a second wave of the virus which would weigh on the pace of fuel demand recovery.
Meanwhile, on Thursday an OPEC-led monitoring panel will meet to discuss ongoing record production cuts to see whether countries have delivered their share of the reductions. Iraq was deemed one of the laggards in complying with the production cuts, they have now agreed with their oil companies to cut crude production further in June.
Class 8 Sales in May Fall to Lowest Point Since 2011
U.S. Class 8 retail sales tumbled 62.5 percent in the month of May. Truck sales hit 9,165 for the month, compared with 24,424 a year earlier. May experienced the lowest sales since 9,712 in February 2011.
Dan Clark, head of BMO Transportation Finance said, “given that the industry is still wrestling with the hangover of a near-record two-year stretch of heavy-duty truck sales, which is now compounded by lower than previously expected economic activity for the next year or two, we aren’t expecting to see a V-shaped recovery in Class 8 sales.”
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Oil prices wobbled after a deal by OPEC and its allies to extend production cuts was offset by the prospect of increased output from Libya and U.S. shale producers.
Oil prices edged higher on Friday but were on track for their first weekly fall in seven as new U.S. coronavirus cases spiked, raising the prospect of a second wave hitting demand.
Given a global glut and low prices for oil, it might come as a surprise that the Trans Mountain pipeline continues to be maxed out.
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CL Werner will continue to serve as chairman of the board of directors through the end of his current term, which ends in May 2021. Current company CEO and president Derek Leathers has been appointed as vice-chairman of the board, and CL Werner has recommended that Leathers be named chairman next year, in addition to CEO and president.
Loadsmart has partnered with Opendock to integrate Loadsmart’s digital freight platform and Smart Scheduling technology with Opendock’s dock management software, enabling shippers to improve the scheduling process.
Battery and fuel cell heavy-duty trucking pioneer Nikola presented at an investor conference Wednesday afternoon, for the first time since the highflying startup began life as a publicly-traded company.
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The number of Americans seeking jobless benefits fell last week, but millions laid off because of COVID-19 continue to receive unemployment checks, suggesting the labor market could take years to heal from the pandemic even as hiring resumes.
China’s factory-led recovery enjoyed an extra boost last month as Chinese consumers stepped up to make big-ticket purchases, pushing up home prices and auto-sales numbers and prompting economists to increase their growth outlook for the world’s second-largest economy.
The May retail sales report, which will be released Tuesday morning, will peel back the curtain on the health of the U.S. consumer amid one of the worst global pandemics in modern history. The consumer is expected to have rebounded following April’s record plunge in retail sales. While COVID-19 likely put some pressure on consumer spending during May, economists predict online sales maintained their strength. Even spending in the beaten-down core components are expected to have rebounded in May.