Crude prices rallied to a fourth straight week of gains last week, regaining ground Friday after Thursday’s dip over inflation concerns and a stronger-than-expected U.S. dollar.
Natural gas futures ended Friday at $3.215/MMBtu, nearly double the same time last year as the summer air-conditioning season begins. U.S. gas demand last week rose for the fourth straight week to a new pandemic high.
Crude prices were higher in mid-day trading this morning, with the WTI up 2.9% to $73.69/bbl and Brent up 1.9% to $74.87/bbl, while natural gas was off 1.3% to $3.17/MMBtu.
Amid increasing U.S. oil demand, West Texas Intermediate could reach the same price as global benchmark Brent crude for the first time in five years.
Industry experts told OPEC to expect limited U.S. oil output growth for the remainder of the year, while forecasting a strong rise in shale output for 2022.
The number of active U.S. oil and gas rigs increased by 9 last week, bringing the total number in operation to 470, up by 204 compared to this time last year, with 100 additional rigs opened already in 2021.
An international consortium led by U.S. firm EIG will acquire a 49% stake in Saudi Aramco’s pipelines, as the world’s largest oil producer makes more moves to raise cash to maintain investor dividends.
China is launching a probe into its soaring coal prices, pledging to crack down on supply hoarders after the average price for the commodity hit a record high last month.
Our most recent list of force majeure and allocation announcements from suppliers is here.
Supply Chain
Power operators in Texas and California warned that rolling blackouts could be needed if residents did not conserve energy during evening peak-demand hours as an intense heat wave gripped the region. The U.S. Southwest’s extreme heat continued into Friday, while some coastal areas began to cool down over the weekend.
A substantial drop in water levels at California’s second largest reservoir is likely to force the closure of a hydroelectric power plant in Northern California for the first time in its 50-year history.
U.S. tropical depression Claudette killed at least 13 people in Alabama after dropping large amounts of rain in much of the deep south, causing flash flooding that stretched into Georgia and the Carolinas Sunday. The storm is now expected to travel up the Atlantic coast, hitting the eastern U.S. and parts of Canada before dissipating Tuesday.
Experts expect this year’s hurricane season in the U.S. to be more active than average.
Four years after Hurricane Maria, frustration is mounting over Puerto Rico’s still-fragile power supply after two outages last week left more than a million people in darkness.
Canadian electricity provider Just Energy Group hopes to recover $100 million from Texas under a new bill that covers certain costs from February’s extreme winter storm. The company was forced to seek protection from creditors as prices in electricity markets soared during the crisis.
Subaru will shut down production at its plants in Gunma, Japan, in July due to the global semiconductor shortage.
Germany’s southern state of Bavaria is holding talks with Intel about building a chip factory to help counter supply chain issues caused by the semiconductor shortage.
Supply-chain disruptions and labor shortages could persist through the end of the year or longer, economists predict, as the rebound of U.S. manufacturing lags surging demand.
Commodities are seeing their worst week since the start of the pandemic, with both gold and copper posting significant declines.
The U.S. Senate approved a $250 billion bill to increase government spending on research aimed to boost the domestic supply of minerals essential for growing technologies such as electric vehicles, satellites and wind turbines.
The White House’s $75 billion plan to increase passenger travel on existing U.S. freight rail lines is facing heavy opposition from the nation’s seven major freight carriers.
Cathay Pacific Airways operated 24% more freighter flights and 18% more cargo-only passenger flights in May compared to one month prior.
Walmart is looking to ramp up its just-in-time inventory replenishment process, a leaner way of restocking shelves that also has the potential to cause shortages such as those experienced during the pandemic.
Stanley Black & Decker will increase spending on supply-chain partnerships by up to 10 percentage points this year, a response to months-long disruptions to its battery and chip supply.
The International Maritime Organization is introducing new measures to ban the use of heavy fuel in the Arctic Ocean by July 2024. The organization ended a meeting last week with largely underwhelming resolutions to address carbon emissions.
Our logistics team reports that bulk trucking firms are refusing to book long-haul, out of network loads due to extreme capacity constraints.
Logistics conditions remain strained, with trucking demand exceeding availability and continued congestion at ports primarily due to increased volume of ships and containers. Clients are advised to provide expanded lead times on orders to help ensure delivery dates.
Markets
The U.S. reported 8,520 new COVID-19 cases and 170 deaths on Saturday and just 3,892 cases and 83 deaths yesterday.
The highly transmissible Delta variant of COVID-19 now makes up more than 10% of new infections in the U.S., overwhelmingly in unvaccinated people.
With more U.S. hospitals reporting zero COVID-19 patients, facilities are cautiously returning to pre-pandemic protocols amid muted joy from healthcare workers.
With just 40% of its residents vaccinated against COVID-19, Arizona’s largest county is seeing one of the U.S.’s last remaining spikes in virus hospitalizations. Wyoming, largely unvaccinated compared to other states, is also facing rising hospitalizations.
With 80% of residents vaccinated against COVID-19, Vermont’s seven-day average of virus deaths hit zero last week, alongside just seven new cases per day.
Plagued with production problems, Johnson & Johnson’s single-shot COVID-19 vaccine, once seen as a potential breakthrough in helping the U.S. combat the virus, now accounts for less than 4% of total vaccines administered.
A new study looking at the lingering effects of COVID-19 shows that people who recovered from the virus could suffer long-term loss of brain tissue.
People who relocated to exotic locations during the pandemic’s remote work boom are finding unexpected challenges, mostly stemming from a lack of cell reception and reliable Wi-Fi.
The airline industry is struggling to keep up with recent demand as customers report longer wait times with phone operators and longer lines at security checkpoints and airport restaurants and shops. American Airlines cut roughly 1% of planned flights in the first half of July to avoid operational strain.
Alongside the rebound in air travel is a rebound in airline incidents:
The U.S. extended restrictions on non-essential border crossings with Canada and Mexico until July 21.
The U.S. Department of Housing and Urban Development is hoping that a change in the way it assesses student debt will help qualify more lower-income workers for federal government-backed mortgages.
The number of U.S. homes for sale increased 6.7% in early June compared to the same time last month, providing a slight easing in the tight housing market, where inventory remains 38% below the same time last year. Half of home buyers who used mortgages in April put at least 20% down, a record, as would-be buyers with insufficient cash reserves are locked out of the market.
Norwegian Cruise Line extended suspensions for three of its cruise lines through September.
Boeing’s largest 737 MAX 10 model took its maiden flight on Friday, furthering the company’s recovery from the 20-month safety groundings over two crashes of its smaller 737 MAX model.
International
A Reuters poll of medical experts expects India to get hit with a third wave of COVID-19 infections by October, with the virus remaining a health threat for at least another year. The country reported 53,449 new infections and 1,427 deaths Sunday.
The World Health Organization is warning that the highly transmissible Delta variant of COVID-19 is quickly becoming the globally dominant variant of the disease.
COVID-19 vaccinations in previously lagging Asian nations have picked up in recent weeks, accounting for roughly three-quarters of new shots administered globally.
Brazil passed half a million total COVID-19 deaths Saturday. With only 11% of its population vaccinated, the hard-hit nation faces a prolonged outbreak as winter arrives in the southern hemisphere.
Despite ready access to vaccines, COVID-19 infections in Russia are surging, with only one-eighth of the population vaccinated against the virus. The highly transmissible Delta variant accounts for over 89% of new COVID-19 cases in Moscow, where daily infections hit an all-time high Friday.
New Zealand will begin administering COVID-19 vaccines to its general population in July in one of the world’s slowest vaccine rollouts. Australia is not far behind, with only 4% of its adult population vaccinated as the nation struggles with sporadic, small outbreaks.
A Brussels court is ordering AstraZeneca to deliver roughly 10 million more doses of its COVID-19 vaccine to the EU after the bloc filed a lawsuit against the company for failing to meet its contract obligation.
Mexico City, facing a rise in COVID-19 cases, is returning to remote schooling just two weeks after students returned to classrooms.
The U.S. raised its travel warning to Level 3, “Reconsider Travel,” for the Mexico states of Baja and Guanajuato due to crime risks.
Mexico’s president expects the country’s GDP to return to pre-pandemic levels by the third quarter after its economy grew 24.8% in May compared to last year.
Up to 20,000 employees of French car maker Renault will be eligible to work remotely for three days a week.
Our Operations
M. Holland’s 3D Printing group offers a rapid response alternative for producing selected parts where resin availability is tight during prevailing force majeure. For more information, email our 3D Printing team.
Market Expertise: M. Holland offers a host of resources to clients, prospects and suppliers across nine strategic markets. To arrange a videoconference or meeting with any of our Market Managers, please visit our website.
Thank you,
M. Holland Company
We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.
We and selected third-parties use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL third-party cookies. For more details about cookies and how we use them, read the full Data Privacy Policy.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience. For more details about cookies and how we use them, read the full Data Privacy Policy.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checkbox-advertisement
1 year
Set by the GDPR Cookie Consent plugin, this cookie is used to record the user consent for the cookies in the "Advertisement" category .
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Cookie
Duration
Description
__cf_bm
30 minutes
This cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
bcookie
1 year
LinkedIn sets this cookie from LinkedIn share buttons and ad tags to recognize browser ID.
bscookie
1 year
LinkedIn sets this cookie to store performed actions on the website.
lang
session
LinkedIn sets this cookie to remember a user's language setting.
lidc
1 day
LinkedIn sets the lidc cookie to facilitate data center selection.
UserMatchHistory
1 month
LinkedIn sets this cookie for LinkedIn Ads ID syncing.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Cookie
Duration
Description
_ga
2 years
The _ga cookie, installed by Google Analytics, calculates visitor, session and campaign data and also keeps track of site usage for the site's analytics report. The cookie stores information anonymously and assigns a randomly generated number to recognize unique visitors.
_ga_S6SF7JZ2WY
2 years
This cookie is installed by Google Analytics.
_gat_UA-7828007-1
1 minute
A variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. The pattern element in the name contains the unique identity number of the account or website it relates to.
_gcl_au
3 months
Provided by Google Tag Manager to experiment advertisement efficiency of websites using their services.
_gid
1 day
Installed by Google Analytics, _gid cookie stores information on how visitors use a website, while also creating an analytics report of the website's performance. Some of the data that are collected include the number of visitors, their source, and the pages they visit anonymously.
CONSENT
2 years
YouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid
2 years
Vimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Cookie
Duration
Description
_fbp
3 months
This cookie is set by Facebook to display advertisements when either on Facebook or on a digital platform powered by Facebook advertising, after visiting the website.
fr
3 months
Facebook sets this cookie to show relevant advertisements to users by tracking user behaviour across the web, on sites that have Facebook pixel or Facebook social plugin.
IDE
1 year 24 days
Google DoubleClick IDE cookies are used to store information about how the user uses the website to present them with relevant ads and according to the user profile.
personalization_id
2 years
Twitter sets this cookie to integrate and share features for social media and also store information about how the user uses the website, for tracking and targeting.
test_cookie
15 minutes
The test_cookie is set by doubleclick.net and is used to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE
5 months 27 days
A cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSC
session
YSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devices
never
YouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-id
never
YouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextId
never
This cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requests
never
This cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.