Oil prices slid 7% Monday over fears of rising COVID-19 cases in China, which could dent demand up to 800,000 bpd next month, according to traders. In mid-morning trading today, WTI futures were down 3.7% at $102.00/bbl, Brent was down 3.7% at $108.40/bbl and U.S. natural gas was down 1.8% at $5.41/MMBtu.
Crude supplies in Cushing, Oklahoma, are at a four-year low as American producers send more oil to the Gulf Coast for export.
U.S. LNG exports rose to a record 9.7 billion cubic feet per day last year, driven by demand in Europe and China:
Houston-based Tellurian greenlighted construction on a $12 billion Louisiana export complex that will expand U.S. LNG export capacity by about 15% in four years, the firm said.
A supply crisis could be imminent after leaders of the G7 nations firmly stood against Russia’s continuing demand that they start paying for Russian gas in rubles by week’s end, a measure that would help the invading nation prop up its currency but goes against contractual terms and Western efforts to punish the nation economically.
Following India and China, Indonesia became the latest nation to say it would consider buying war-discounted Russian oil.
Maersk said some depots serving local ports in Shanghai have closed indefinitely, and trucking to and from terminals will be “severely impacted” due to COVID lockdowns.
Labor negotiations will soon begin for the more than 22,000 dockworkers at 29 West Coast ports whose contracts end in June, heightening anxiety about further logistics disruption.
Construction and business groups are lobbying to stall a wave of state and federal gas-tax decreases that could jeopardize infrastructure funding, including projects tied to last year’s $1 trillion aid package.
The U.S. Surface Transportation Board is working through feedback from logistics providers on a proposal to expand reciprocal switching, which would compel rail companies to open their tracks for use by competitors.
Almost 100,000 vehicles across the globe were removed from planned production last week due to semiconductor shortages.
Apple is reportedly cutting production of iPhone SEs by about 20% next quarter on signs that consumer-electronics demand is being hurt by the war in Ukraine and rising inflation.
FedEx’s supply chain unit is ending operations at four facilities in California, Pennsylvania and Tennessee this year as customers shift locations and gravitate to other providers as their contracts expire.
Higher food prices are rippling through global markets, changing the way consumers eat and reducing or shrinking the menu items offered by the world’s most recognizable brands.
Domestic Markets
The U.S. reported 42,967 new COVID-19 infections and 985 virus fatalities Monday. Fatalities are at their lowest level since before the Omicron variant took hold last fall.
Just 30% of Los Angeles children have been vaccinated against COVID-19 compared to 80% of teens and adults, reflecting broader trends across the nation.
Uninsured Americans may have to pay up to $195 for individual COVID tests as congressional funding begins drying up. Hospitals are bracing for the financial impact from lost reimbursements.
Up to 10%, or $80 billion, of the Paycheck Protection Program may have been fraudulently claimed, prosecutors say.
U.S. healthcare spending rose 4.2% in 2021, less than half the growth rate of the record-setting first year of the pandemic.
Four of New York City’s five counties lost comparatively more people last year than any other major county in the U.S., led by a 6.9% decline in Manhattan.
The White House unveiled its $5.8 trillion budget proposal for next year, slightly smaller than initial projections, but still projecting an estimated $1.15 trillion deficit.
The U.S. trade deficit in goods fell 0.9% in February, the first decline in three months after a record-setting January, led by a gain in export values rather than export volumes.
HP is looking to capitalize on remote working trends with the $3.3 billion acquisition of a maker of phone headsets and audio/video accessories.
The Justice Department endorsed antitrust legislation yesterday that would forbid large platforms such as Amazon and Google from favoring their own products and services.
Funeral homes in Hong Kong have introduced eco-friendly, cardboard coffins to help deal with a surge in COVID-19 deaths and corresponding shortage of traditional caskets.
Older Israelis who received a second COVID-19 vaccine booster were 78% less likely to die than those with only one booster, a new study shows.
Overcoming component shortages and supply chain challenges, Mexico’s heavy truck makers increased production 41% in February compared with the year-ago month, with most destined for export.
The White House is lobbying Congress to authorize $11 billion to support foreign clean energy projects this year, over 10 times the level from last year.
Canadian e-commerce company Shopify is putting over $13 million into carbon removal startups, the firm said.
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