Saudi Arabia and the United Arab Emirates reached a compromise in their stalemate over OPEC+ production quotas, allowing the UAE to increase its output and paving the way for another OPEC+ meeting.
Oil prices climbed roughly 1.6% Tuesday to their highest close since October 2018 following news of an eighth consecutive week of U.S. inventory draws. Crude prices eased in morning trading, with the WTI down 1.5% at $74.12/bbl and Brent off 1.1% at $75.66/bbl. Natural gas was down 1.1% to $3.66/MMBtu.
After stagnating in May, global refining throughput increased by 1.6 million bpd in June, a trend the International Energy Agency expects to continue through July and August.
U.S. shale production is expected to increase modestly by 42,000 bpd in August on higher activity in the Permian Basin, the Energy Information Administration predicts.
China’s crude oil imports dropped by 3% in the first six months of 2021 compared to a year ago, the first half-year contraction since 2013.
China began constructing the world’s first onshore “small” nuclear reactor, a powerful miniaturized technology that could meet the needs of 526,000 households while providing greater safety than traditional nuclear.
U.S. firm 8 Rivers Capital is partnering with the U.K.’s Sembcorp Energy to build a 300-megawatt, “net-zero” power plant in England whose emissions will be captured and stored offshore.
Royal Dutch Shell is mulling construction of a carbon capture and storage project in Canada’s Alberta province with the capacity to store 300 million tonnes of carbon over its lifetime along with boosting regional hydrogen production.
ERCOT, the main power distributor in Texas, introduced new tactics to improve the reliability of its power grid, announcing plans to purchase more reserve power and review the need for on-site fuel supplies for some generators.
Our most recent list of force majeure and allocation announcements from suppliers is here.
Roughly 60 wildfires are being reported across 10 states in the U.S. West, with Arizona, Idaho and Montana accounting for nearly half of the blazes. A record heat wave engulfing the region cooled slightly Tuesday night and is expected to diminish further the rest of the week.
The World Shipping Council says that increased demand for imports is causing congestion across supply chains, and that a return to normal levels of demand rather than more regulation will help solve the backlogs.
Freight overflows led FedEx to temporarily suspend service to some 1,400 less-than-truckload (LTL) customers in the fourth quarter of 2020, an issue now spreading to other LTL carriers.
Freight expenditures rose 11% from May to June and 56.4% year over year, the fastest such growth on record for the Cass Freight Index.
A survey of small businesses shows that 47% of respondents plan to raise prices, the highest level in 40 years.
U.S. pork prices rose 3.8% in June, the biggest jump in 25 years, while the price of beef increased by 4%.
Small meat and dairy farmers are withering under increased competition from slaughterhouses and mega-dairies, which are better able to handle a current surge in feed costs.
The Ever Given container ship that blocked the Suez Canal for several days in March set sail from Egypt yesterday, ending a 112-day battle between the ship’s owners and the Egyptian canal authority over compensation for the incident.
Our logistics team reports that bulk trucking firms are often declining 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.
The U.S.’s seven-day average for COVID-19 cases surpassed 23,000, more than double the number of cases from three weeks ago. The country reported 25,919 new cases and 372 deaths Tuesday, with 48.65% of the population now fully vaccinated.
The virulent Delta variant of COVID-19 now accounts for 58% of infections in the U.S.
COVID-19 cases rose in 48 states over the past two weeks, with just Maine and South Dakota keeping virus numbers at bay.
COVID-19 cases in New York City have risen 32% over the last seven days compared to the seven-day average from four weeks ago, a result of certain neighborhoods lagging in vaccinations.
The Delta variant of COVID-19 is now the dominant strain in New Jersey, accounting for 41% of new infections in June.
COVID-19 hospitalizations in North Texas have doubled since June 1 alongside a 90% increase in the seven-day average of new cases, led by the Delta variant.
After falling steadily since April, COVID-19 cases in Tennessee are on the rise, with hospitalizations jumping by 28% since July Fourth.
Chicago reinstated a COVID-19 emergency travel order for Missouri and Arkansas, requiring unvaccinated travelers from the states to have a negative test or quarantine for 10 days.
Florida’s Orange County is asking residents to wear masks indoors regardless of vaccination status amid rising COVID-19 case numbers. In Miami-Dade County, the seven-day average infection rate rose to 150 per 100,000 people, five times the national average and second highest in the nation behind Los Angeles County.
Health officials in Louisiana are warning of a new wave of COVID-19 after reporting 631 new infections Tuesday, a 176% increase over the past two weeks.
Health officials in Mississippi are warning about the danger of the Delta variant to children, reporting that seven children in the state are in intensive care units.
California will require all students and staff to wear masks indoors when school reopens in the fall.
U.S. health officials say more data is needed to determine whether a third COVID-19 shot is necessary, warning that a booster dose could cause more serious side effects.
Norwegian Cruise Line is suing Florida over the state’s ban on businesses requiring proof of COVID-19 vaccination, a critical step in the resumption of cruises. In Singapore, a “cruise to nowhere” was cut short and passengers were sequestered in their cabins after a passenger was detected with COVID-19.
Many types of U.S. infrastructure are approaching servicing age:
The cost of hotel and motel stays in the U.S. rose nearly 8% in June compared to a month earlier, the second-largest gain on record, pushing prices back above pre-pandemic levels.
Despite many restaurants and hospitality businesses offering new perks to lure back employees, economists fear labor shortages will continue in the wake of the mass exodus of workers from the industry during the pandemic.
COVID-19 cases in the Netherlands jumped dramatically to 52,000 last week from only 8,500 the week prior. The nation’s prime minister restored curbs on dining and entertainment venues while apologizing for reopening the economy too soon.
All COVID-19 cases in Portugal’s Lisbon and Algarve regions are of the Delta variant, representing 86% of cases throughout the country.
More than 821,000 British schoolchildren missed class due to exposure to COVID-19 in July, a record.
Analysts trimmed forecasts for Japan’s economic growth this quarter following fresh pandemic curbs in Tokyo.
U.S. businesses along the Mexican border have lost an estimated $10 billion in revenue as a result of border restrictions imposed early in the pandemic, while business activity on the southern side of the border rose by more than $2.2 billion.
The EU approved pandemic recovery plans for 12 nations Tuesday, including France, Germany, Italy and Spain, allowing them to use funds in financing projects aimed at spurring economic growth.
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.
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We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.