Nearly one month ago, U.S. oil futures hit a historic moment, dropping below zero for the first time. At that time traders were scrambling to pay buyers to take off crude futures, while month end rolls were looming. This morning, U.S. oil futures climbed roughly 9% to $32 a barrel, a price that would allow some of the lowest cost oil wells in the United States to break even. Oil prices are roughly half of what they were to start the year, but the slight uptick in driving across America, has helped rally the oil prices. Currently, 87E10 gasoline pump prices are at an average of $1.88 a gallon in the U.S., about $0.98 less than last year.
While truck drivers continue to provide goods and services over the road, concerns continue to rise over safety at rest stops. Just last week, President Trump was celebrating truck drivers amid the coronavirus pandemic. The President held an event noting states have been working to make accommodations for truck drivers nationwide. Although the public attention for truckers has been positive for the industry, many issues arise when drivers are traveling. A big problem is detention times, where facilities are understaffed, and detention times can be hours. Thus, leaving drivers without access to food and water or even restrooms.
Yesterday, the stock market on Wall Street had their largest single day move since 2008 on expectations of the largest fiscal stimulus package in modern American history. The White House and Senate leaders reached a deal early this morning on a stimulus bill to combat the economic impact of the coronavirus outbreak. Washington is hoping the deal will set the stage for a robust economic recovery. Deemed “the largest rescue package in American history” the legislation will pass the vote later today.
U.S. shale oil and gas producers are feeling the pressure from the latest panic on the spread of the coronavirus. Impact from the virus has caused West Texas Intermediate to fall below $45 a barrel. In its latest Drilling Productivity Report, released earlier this month, the Energy Information Administration said, “oil production has declined across six of the seven major shale players in the country, by some 21,000 bpd. However, the Permian production is still growing by 39,000 bpd. Good news is for the consumer, prices look to continue to go down whereas the oil and gas drillers feel pressured with the continued slow production “
On Tuesday the United Kingdom’s government announced a ban on the sale of Internal Combustion Engines starting in 2035 (five years earlier than previously planned). Meaning it will eventually be illegal to sell new gas, diesel, and even hybrid powered cars to adhere to this standard. Many governments across the world have plans of internal combustion engine bans in the coming decades. Germany is cracking down on older diesel cars. France wants to ban diesel and gasoline cars by 2040.Norway wants only electric or plug-in hybrid cars to be available by 2025. California's state government has stopped buying gasoline sedans for fleets, and the state itself seems to be flirting with an eventual ban too.