Weekly Round-up – January 6, 2020

EIA’s Best of 2020

Read the highlights of a hectic year from the pre-eminent governmental energy agency. Click Here to read more from the EIA.

Oil Tops $50 With Saudis Pledging a Surprise Unilateral Cut

Oil surged to its highest since February after Saudi Arabia pledged to voluntarily cut output by an extra 1 million barrels a day in what Russia’s Deputy Prime Minister described as a “new year gift” to the market. Other producers will hold supply steady or make a small increase, delegates said. Russia and Kazakhstan will be allowed to boost output by a combined 75,000 barrels a day in both February and March.

Should Oil Markets Brace for A U.S. Shale Comeback?

Oil output in the United States has been gradually growing as producers restore curtailed volumes and oil prices recover part of the losses from earlier in 2020. EIA estimates point to U.S. oil production staying at around 11 million bpd for at least another year, as production rates from existing wells in the U.S. shale patch will fall faster than production gains from fewer newly drilled wells. But some analysts say that the market has been too quick to write off U.S. shale again, and will be surprised by the rebound in American oil production in 2021.

What will happen to US-Mexico freight in 2021?

The 2021 freight market could be one of the most important in years as the transportation and trade community attempt to recover from the impact of COVID-19. Cross-border shippers, carriers and third-party logistics providers also will have to navigate new trade policies after President-elect Joe Biden takes office and perhaps alters international trade relations with countries like Mexico and China.