Some 17.5 million bpd of oil has been lost to the market since Hurricane Ida struck more than a week ago, one of the costliest disasters to U.S. offshore energy since Katrina in 2005.
Energy prices were mixed in mid-day trading today, with WTI down 0.3% to $69.11 bbl, Brent down 0.4% to $72.34/bbl and natural gas higher by 0.8% to $4.95/MMBtu.
Mexico cut its forecast for oil production at state-owned Pemex to 1.83 million bpd next year while reducing its profit-sharing duty with the government from 54% to 40%, the latest fallout following two recent offshore accidents that knocked out a quarter of the company’s output.
Oil demand in China, the world’s top energy consumer, is expected to be 13% higher in the fourth quarter than in the same period in 2019, as demand also surpasses pre-pandemic levels in several other nations.
Russian oil shipments to the U.S. are rising in the wake of Hurricane Ida, pushing prices higher for medium sour grades like those produced in the Gulf of Mexico.
The U.S. now gets 3% of its power from solar sources, a share that could increase to 44% by 2050 with the help of more than $550 billion in needed investment, officials say.
Plastic “nurdles,” pellets likely lost during transfer or transit, are a growing problem for the Great Lakes and their surrounding lakes and tributaries.
Our most recent list of force majeure and allocation announcements from suppliers is here.
Ninety percent of supply chain companies responding to a recent survey are recruiting more employees for the holiday season, while nearly half of respondents are raising wages to attract and retain workers, even as warehouse and storage hourly earnings are at an all-time high.
“Athleisure” maker Lululemon reported better-than-expected quarterly financials yesterday, as COVID-19 closures at major Vietnamese retail factories have yet to hit the company’s bottom line.
Nvidia, the world’s largest graphics and AI chip maker, is seeking European antitrust approval for its $54 billion takeover of British chipmaker Arm, whose customers include Qualcomm, Samsung and Apple.
Revenue in Old Dominion Freight Line’s less-than-truckload unit rose nearly 30% in August on the back of a 10.9% rise in daily volumes.
Proposed legislation to lower the minimum age for driving big rigs on interstates to 18 is generating controversy within the trucking industry.
A&R Logistics rebranded itself as “Quantix” to unite its various logistics brands from a spate of acquisitions.
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.
Domestic Markets
The U.S. reported 176,710 new COVID-19 cases and 2,146 fatalities yesterday.
COVID-19 cases appear to have crested and begun declining in several of the most recent hard-hit states including Arkansas, Mississippi, Missouri, Alabama and Florida.
Hospitals in Kentucky are at or near capacity, with COVID-19 occupancy at an all-time high and hospitalizations among children reaching critical levels.
COVID-19 hospitalizations in New York are up 206% since Aug. 1 as virus fatalities reach a four-month high.
Hundreds of National Guard soldiers were sent to Tennessee to assist overburdened hospitals with a flood of COVID-19 patients.
Breakthrough COVID-19 infections among fully vaccinated people account for roughly 40% of new cases in Massachusetts, while unvaccinated people still make up most of the state’s virus hospitalizations.
Soon after a circuit court judge allowed Florida school districts to enforce mask mandates, the state’s governor filed an appeal to overturn the decision and reinstate his executive order barring mask mandates in the state.
Several South Carolina cities are defying a state ban on local mask mandates by requiring masks for indoor activities.
Louisiana hospital workers are experiencing unprecedented stress as they grapple with the surge in COVID-19 infections and recent trauma from Hurricane Ida.
The Department of Agriculture will distribute $700 million in grants to farm and food workers to defray pandemic-related costs.
U.S. economic growth slowed over the summer due to spreading COVID-19 cases, Federal Reserve anecdotal evidence suggests, with losses largely concentrated in dining, travel and tourism. The nation faces further slowdowns in September, with businesses and consumers adjusting to renewed mask mandates, travel restrictions and delayed office openings.
First-time jobless claims fell to 310,000 last week, a pandemic low, from 345,000 the week prior.
U.S. job openings jumped to a record high of 10.9 million at the end of July, suggesting last month’s slowdown in hiring was mostly the result of a severe labor shortage.
U.S. bank profits slipped 8.3% in the second quarter from the third as firms slowed the rate of reversing loan-loss reserves built up during the pandemic. Profits were still up 281% from the same time last year.
Home mortgage applications fell to a two-month low last week while interest rates remained largely unchanged.
The White House is funneling $1.4 billion to small meat producers and workers to reduce industry concentration and bring down domestic food prices.
Amazon is developing a new point-of-sale system to be sold to third parties, the tech giant’s latest entry into a new market dominated by established players including Shopify and PayPal.
Energy storage startup Energy Vault is going public in a roughly $1.6 billion deal, enabling the company to boost investment in technology to store renewable energy electricity during off-times.
Ford announced the hiring of a top Apple executive to oversee its advanced electric-vehicle technology.
Chinese producer prices rose to a 13-year high in August, a 9.5% increase from the same time last year.
Philippine Airlines filed for bankruptcy yesterday, the result of prolonged travel restrictions and significant declines in tourism to the airline’s home country.
During our latest Plastics Reflections Web Series event, panelists from M. Holland, BPI, LyondellBasell and MTS Logistics discussed how global supply chain complexities are impacting the plastics industry. Click here to access the recording.
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.
We will provide further COVID-19 bulletins as circumstances dictate. For all COVID-19 updates and notices, please refer to the M. Holland website.