5 Reasons Oil Prices Could Move Even Higher
Last week, Credit Suisse raised their WTI crude forecast by $10/bbl for 2018. Although the market has been pulling back over the past could days, overall fundamentals continue to point towards higher prices. Putting aside tensions over Syria, there are numerous other conflicts and supply/demand trends that could keep prices elevated in 2018. Click Here to read the 5 reasons from Forbes.
Global Economy Strong, But Trade Tensions a Threat
The International Monetary Fund (IMF) recently posted that the global economy still shows “broad-based momentum” as predicted earlier in the year. Goldilocks conditions for global markets have helped create synced growth – all major economies are firing at high gear. Still, advanced economies have a number of long-term threats such as aging populations and falling labor force participation. In the near-term, trade tensions threaten to dampen demand, which would ultimately reduce oil demand and lower oil prices. Click Here to read more from the IMF.
Canadian Pipeline Tensions Escalate
Alberta has threatened to cut off fuel deliveries to neighboring British Columbia if B.C. does not approve the Trans Mountain Pipeline. Kinder Morgan stopped construction and issued a May 31 deadline to for B.C. to end its opposition to the pipeline. So far British Columbia has not budged in their opposition, but the prospect of losing fuel supplies from their neighbor could nudge them to comply. Click Here to read more from World Oil.
Trucking Industry Boosted by Tax Law
The trucking industry has been feeling the benefits of the tax reforms passed by Trump earlier in the year, according to American Trucking Association Chairman Dave Manning. Demand has risen, keeping profits high. On the flip side, lower tax expenses have allowed trucking companies to raise wages, bringing driver turnover to its lowest point in 30 years. Click Here to read more from Transport Topics.