Oil in Longest Rally in 3 Months on Signs of U.S. Stockpile Drop

Futures advanced for a fifth day, having added 5.5 percent since Oct. 25, while in London Brent crude rose to a new two-year high. Crude stockpiles dropped by 5.09 million barrels, while gasoline supplies fell by 7.7 million last week, the American Petroleum Institute was said to report. A Bloomberg survey also forecast a decline in oil inventories — the fifth in six weeks — before government data Wednesday.

Global benchmark Brent crude topped $60 a barrel last month for the first time since July 2015, while West Texas Intermediate, the U.S. marker, is set for the highest close in two years as Saudi Arabia and Russia signaled support for extending supply cuts well into 2018. The market was also buoyed by conflict between the Iraqi central government and Kurdish forces that threatened crude production from northern fields in the OPEC nation.

“U.S. stock draws have been leading and continue to lead the market higher,” said Olivier Jakob, managing director at Petromatrix GmbH in Zug, Switzerland.

An Energy Information Administration report Wednesday is forecast to show U.S. crude inventories fell by 1.3 million barrels last week, according to the median estimate in a Bloomberg survey of analysts. Gasoline stockpiles probably dropped by 1.55 million barrels. Daily exports of American crude climbed for the sixth time in seven weeks to 1.92 million barrels in the week ended Oct. 20, according to EIA data.
more detail at: https://www.bloomberg.com/news/articles/2017-11-01/oil-extends-gains-above-54-on-signs-of-u-s-stockpile-decline

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Truck driver shortage hits all-time high — could double by 2030 (chainstoreage.com)

A shortage of truck drivers is a big part of the country’s supply chain problems. The trucking industry is short 80,000 drivers, an all-time high for the industry, according to the American Trucking Associations. The shortage, which existed pre-pandemic but has grown worse since then, comes at a critical time in the retail supply chain cycle, with U.S. ports backlogged just before the start of the holiday shopping season. Truck drivers move 71% of the US economy's goods,. “Since we last released an estimate of the shortage, there has been tremendous pressure on the driver pool,” said Bob Costello, chief economist, ATA. “Increased demand for freight, pandemic-related challenges from early retirements, closed driving schools and DMVs, and other pressures are really pushing up demand for drives and subsequently the shortage." The outlook for the next few years doesn’t offer much hope. Based on driver demographic trends, including gender and age, as well as expected freight growth the shortage could surpass 160,000 in 2030.
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