News broke out that Russia and Saudi Arabia have struck a secret deal last month over increasing oil production to quench the simmering oil prices. President Trump has repeatedly spoken against the OPEC for the rise in crude oil price, and has called out for an increase in oil production before the U.S. congressional elections next month.
Even before the deal was set in place, Russia and Saudi Arabia have been progressively pushing the pedal on oil production rate after the debacle in Venezuela and the ongoing trade embargo scare with Iran – two of OPEC’s once-dominant members. Regardless, the efforts seem to have not been enough as the crude oil price is now over $85 per barrel.
The idea is to increase production by half a million barrels per day in total, but a formal announcement has not been made yet, supposedly being reserved for a full-OPEC meeting to be held in December.
Did you know?
About 16.5% of organizations across several industries including warehousing are now using commercial service robots, and 21.5% have them in pilot programs, according to a 2018 survey of 600 respondents by research firm IDC.
“A driver that drives a Formula 1 does not win when he drives fast on the straight lanes, but when he controls the curves. Challenges are about being connected with the customer at all times, understand their changing needs, and controlling the curves.”
– Moshe Shlisel, CEO of GuardKnox Cyber Technologies, while explaining the need for companies to adapt to change and its customers’ wants.
In other news:
Online orders force supermarkets to rethink their stores
New layouts, curbside pickup zones, round-the-clock restocking help retailers handle new shopping patterns. (The Wall Street Journal)
ExxonMobil announces mutually compatible 0.5% sulfur bunker fuel blends
ExxonMobil has announced its range of new 0.5% sulfur marine fuel blends will be compatible with each other, alleviating one of the shipping industry’s biggest concerns about compliance with tighter sulfur limits in 2020 and raising the possibility these fuels will be sold at a premium to other 0.5% sulfur blends. (S&P Global)
Trucking, shipping groups dig into USMCA changes
North America’s new trade agreement is being greeted with a sigh of relief by transportation industry lobbyists and analysts alike. (Today’s Trucking)
Want a more sustainable supply chain? L’Oreal says avoid air freight
To make the biggest dent in carbon emissions, L’Oreal found that reducing reliance on air freight provides an outsized impact. (Supply Chain Dive)
Amazon Warehouse Workers Lose Bonuses, Stock Awards for Raises
Amazon Inc. is eliminating monthly bonuses and stock awards for warehouse workers and other hourly employees after the company pledged this week to raise pay to at least $15 an hour. (Bloomberg)
The ongoing U.S.-China trade war has turned for the worse, as the crude oil shipments to China from the U.S. have totally stopped, as reported by the president of China Merchants Energy Shipping Co (CMES) yesterday. Unlike other commodities, oil exports to China are relatively recent, starting only in 2016, but had the impetus to turn into a viable business in quick time.
Although there have been no actual embargo on U.S. oil export to China, it can be seen that the Chinese importers are looking for a more stabler country to trade with for its oil needs. This does not bode well to the trade relationship of the two economic powerhouses, and in the long run could also affect the shipping industry greatly.
Hammer down everyone!