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Fed Chair Powell’s Commentary Sends Oil Prices Lower
Powell’s announcement yesterday of strong economic growth and “further gradual increases” in interest rates have increased market odds of four rate increases this year rather than three. Bond markets and the dollar rose in response to his comments, sending equities and commodities lower. Click Here to read more on why the Fed’s remarks sent oil prices lower.
IEA: U.S. set to overtake Russia, become largest oil producer
After surpassing Saudi Arabia to become the 2nd largest producer in the world, the U.S. is on track to take the lead spot from Russia this year or next, according to the IEA. The U.S. surpassed 10 million barrels per day (MMbpd) in Q4 2017, while Russia’s production fell throughout the year to its current level of 11 MMbpd. The IEA expects U.S. production to surpass 11 MMbpd by the end of 2018, so if Russian production remains steady, the U.S. will take the lead position. Click Here to read more from MarketWatch.
Middle East Strife May Cause Long-term Oil Struggles
While U.S. production is the hot topic currently, many analysts believe that the Middle East will remain the key area for production over the long-term. However, geopolitical fighting between countries could put production in jeopardy. Demand will continue growing over the coming decade, but U.S. production will likely peak in the 2020s. If Middle Eastern countries are unable to meet demand, the world may struggle to find sufficient oil. Click Here to read more from Business insider.
New ATA Initiative Highlights Cost of Poor Infrastructure
The American Trucking Association launched a new initiative this past week to show the high costs of traffic congestion and poor road conditions. The campaign, called Road to a Better Future, includes educational materials and calls to action on ways to get involved in effecting change. The campaign points out the cost of doing nothing and letting infrastructure continue to crumble. Click Here to read more from the ATA.