COVID-19 Bulletin: April 5
April 5, 2021 • Posted in Daily Bulletin
Hello,
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Supply
- OPEC+ will boost collective production by more than 2 million bpd over the coming months, starting with a 350,000-bpd increase in May as world economies begin to rebound from the pandemic.
- Energy prices were lower in early trading today, with the WTI down 3.4% at $59.34/bbl, Brent down 3.1% at $62.86/bbl and natural gas down 5.1% at $1.79/MMBtu.
- The number of active oil and gas rigs in the U.S. increased by 13 last week, with the total number of active rigs standing at 430, or 234 fewer than the same time last year.
- The U.S. has exported record amounts of liquefied natural gas (LNG) to Asia in recent weeks, with colder-than-normal winter temperatures in Japan, China and South Korea fueling higher demand for gas in the world’s top LNG-importing region.
- Rising numbers of air travelers could boost global aviation fuel demand, as the rolling average of commercial flights hit a post-pandemic high in recent days.
- Exxon Mobil is set to post its first profit in five quarters on a $2.7 billion gain from higher oil and gas prices, despite a nearly $800 million hit due to Texas’ February storm.
- Our most recent list of force majeure and allocation announcements from suppliers is here.
Supply Chain
- All 422 ships stranded by the recent blockage in the Suez Canal passed through the waterway by Saturday, authorities report.
- Japan and the U.S. will cooperate on the supply of critical parts for computer chips, aiming for an agreement later this month.
- Separately, the White House will host a meeting on the resiliency of U.S. supply chains amid broad policy review on the issue.
- A shortage of railcars is delaying handling of imports at the ports of Los Angeles and Long Beach.
- Roughly half of British firms expect long-term trade disruption caused by Brexit.
- Despite record volumes and the “best pricing in years,” General Mills’ margins in the current quarter will end up lower than 2019 levels, a result of surging logistics prices.
- The Environmental Protection Agency will study how using renewable fuels to power electric vehicle charging could generate tradeable credits under a biofuels program.
- California is facing its third driest year on record, with available water in reservoirs dropping by half.
- Logistics conditions remain strained, with trucking demand exceeding availability and continued congestion at ports due in part to operating challenges related to the pandemic. Clients are advised to provide expanded lead times on orders to help ensure delivery dates.
Markets
- There were 34,282 new COVID-19 cases yesterday in the U.S. and 222 deaths. More than 165 million vaccine doses have been administered, with over 57 million people, 17.5% of the population, now fully vaccinated.
- A rise of new COVID-19 infections in young people is fueling new outbreaks in some states. However, the former FDA chief said the U.S. is not likely to see a full “fourth wave” of the virus due to rising vaccinations.
- Florida reported 6,790 new COVID-19 cases last Thursday, the most since the beginning of March.
- Michigan reported its first case of a highly infectious Brazilian variant of COVID-19.
- North Dakota has reported zero COVID-19 fatalities for the ninth straight day.
- Nearly half of U.S. states opened COVID-19 vaccinations to everyone over the age of 16 by the end of last week. More than 4 million COVID-19 doses were distributed on Saturday, a record.
- The U.S. likely has enough COVID-19 vaccines to inoculate its entire population without having to use AstraZeneca’s shot, the nation’s top infectious disease expert said.
- U.S. regulators halted production of AstraZeneca’s COVID-19 vaccine at a plant in Baltimore, days after the facility botched 15 million doses of Johnson & Johnson’s shots. Johnson & Johnson will now take over exclusive manufacturing at the facility.
- The FDA is allowing Moderna to increase the number of COVID-19 vaccine doses in each of its vials, boosting the U.S. rollout.
- At least 45 state attorneys general are publicly targeting the online sale of fake COVID-19 vaccination certificates.
- The NBA’s Miami Heat is the first U.S. sports franchise to require some fans to show proof of vaccination in order to access privileges at games.
- The FDA authorized the first COVID-19 tests for repeated, frequent use by consumers at home, which will be sold over-the-counter without a prescription.
- Fully vaccinated Americans can resume domestic recreational travel at “low risk,” federal regulators ruled.
- An analysis of foot-traffic in the U.S. shows Americans went out less in January, February and early March compared with the same period in 2020, suggesting life in most of the U.S. is not back to normal.
- Factory activity expanded worldwide in March as pandemic lockdowns were eased:
- U.S. manufacturing activity jumped to its highest level in more than 37 years, driven by strong growth in new orders.
- European factory activity increased by its fastest pace in 24 years.
- Asia saw factory activity gain in Japan, South Korea and China, which experienced strong domestic consumption and foreign demand for Chinese-made goods.
- Canadian manufacturing activity grew at its fastest pace in 10 years.
- Amazon hired over 400,000 workers in the U.S. last year, creating nearly as many jobs as 136 other top members of the S&P 500 combined, according to a Wall Street Journal study.
- Out of the 916,000 jobs created in the U.S. last month, roughly 53,000 were manufacturing positions, the highest number of new factory jobs in six months.
- Despite the global semiconductor shortage, automakers reported a rebound in first-quarter U.S. sales, with General Motors posting a 4% gain, Nissan 11% and Hyundai 28%.
- General Motors unveiled its new all-electric Hummer with a range of up to 300 miles, slated for sale in 2023.
- Tesla delivered 184,800 cars worldwide in the first quarter of 2021, beating analyst estimates and last quarter by about 4,000 vehicles.
- U.S. business investment rose 17% in computer equipment, 6% in software, and 1% in research and development in the fourth quarter, as businesses increase their investments in automation.
- United Airlines is hiring 300 pilots as travel demand rebounds alongside mass vaccinations.
- Median home prices in dozens of metro areas in the U.S. have jumped by double-digit percentages since last year, amid the hottest real estate market in 14 years.
- With millions of borrowers delaying their mortgage payments during the pandemic, federal agencies are asking mortgage servicers to start reaching out to homeowners early about modifying loans.
International
- Over the weekend, Canada became the 23rd nation to register more than 1 million COVID-19 cases as the country faces a third wave of the virus.
- Canada’s Quebec and British Columbia provinces joined Ontario in imposing new pandemic restrictions.
- France reported more than 50,000 new COVID-19 cases last Thursday, as the number of virus patients in ICUs jumped the most in five months, to 5,273.
- Germany’s prime minister implored the population to stay home over Easter and meet with fewer people, as the capital Berlin announced a nighttime ban on gatherings for the holiday weekend.
- U.K. lawmakers will announce a roadmap for reopening the economy today, which is expected to include twice-weekly COVID-19 testing for everyone in the nation.
- Poland recorded 35,251 COVID-19 cases on Thursday, a record.
- Portugal extended a closure of its border with Spain.
- Greece is extending flight restrictions on both domestic and international travelers as COVID-19 cases continue to rise.
- Turkey recorded more than 40,000 new COVID-19 cases on Thursday, a record.
- Russia’s COVID-19 death toll topped 225,000, the third highest in the world behind the U.S. and Brazil.
- The World Health Organization has recognized the “serious situation” in Brazil, where several states’ hospitals are overwhelmed with COVID-19 patients. With less than 10% of the population vaccinated, wealthy Brazilians are seeking to purchase vaccines in place of the government.
- Colombia is imposing new pandemic restrictions after COVID-19 patients in the nation’s ICU hospitals approached record highs.
- Chile is closing its borders for all of April to stop the influx of COVID-19 mutations.
- Argentina’s president became the latest world leader to become infected with COVID-19.
- Africa’s COVID-19 vaccine rollout is facing a severe setback after India, the world’s largest vaccine manufacturer, temporary halted exports of shots to deal with growing domestic cases. The European Union and the U.K. are asking that India lift its bans and export 10 million needed vaccine doses.
- India broadened COVID-19 vaccine eligibility to those over age 45 in its biggest inoculation push yet, as cases surge to their highest levels in six months. The nation will shut malls, cinemas, bars, restaurants and places of worship in Maharashtra state, which includes the crowded financial capital Mumbai.
- China reported 26 new COVID-19 cases last Friday, up from nine the previous day.
- Roughly 70% of Japanese COVID-19 patients are infected with the “Eek” variant of the virus, which is known for reducing vaccine protection.
- South Korean authorities are drawing criticism for relying on the international vaccine-sharing group COVAX to secure doses for its domestic inoculation campaign, doses which have failed to materialize in any significant number.
- COVAX vaccine shipments are expected to reach more than 100 countries in the next couple of weeks.
- The pandemic has jeopardized roughly $600 billion in debt service payments from 72 low- and middle-income countries until 2025.
- A $650 billion increase in International Monetary Fund reserves could come as soon as August, which could help more low-income countries fund programs to combat the pandemic.
- The international economy is recovering faster than expected, yet a new wave of lockdowns threatens to deepen the divide between low- and middle-income countries with limited resources and rich countries, who are fast on their way toward mass immunization to COVID-19.
- Brazil posted a trade surplus of $1.5 billion in March, lower than expected and sharply down from the $3.8 billion surplus from the year-ago period. In February, the nation’s industrial production fell for the first time in 10 months, contributing to an expected economic contraction in the first quarter.
- France’s public deficit is expected to reach 9% of GDP this year, up from previous forecasts as the country enters its third national lockdown. Meanwhile, the nation’s economy is expected to grow by 5% in 2021, a downward revision.
- Stellantis is set to triple its global sales of electric vehicles to more than 400,000 units this year.
- Early smartphone leader LG will cease production and sales of its mobile phones effective July 31.
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.