AAA Daily Fuel Gauge Report for Friday, 8/11/23

American Dollar to Canadian Dollar = 0.735780; American Dollar to Chinese Yuan = 0.140898; American Dollar to Euro = 1.108371; American Dollar to Japanese Yen = 0.007098; American Dollar to Mexican Peso = 0.051390.

“After declines in November and December totaling 1.7%, tonnage was unchanged in January” said ATA Chief Economist Bob Costello. “This outcome is impressive considering the massive winter storm that brought cold temperatures and significant snowfalls to large parts of the country, including those that rarely see such storms. Furthermore, the terrible wildfires in California likely also caused freight disruptions. Softness in manufacturing and retail sales continue to be a drag on truck freight volumes as well, so the fact tonnage was flat is a positive sign.” In January, the ATA advanced seasonally adjusted For-Hire Truck Tonnage Index equaled 111.9 the same as December. The index, which is based on 2015 as 100, was up 0.3% from the same month last year, the first year-over-year increase since August. The not seasonally adjusted index, which calculates raw changes in tonnage hauled, equaled 110 in January, 1.1% above December’s reading of 108.9.

Futures were down 1 percent in New York, extending last week’s 3.9 percent drop. The two African producers, who were exempt from supply cuts because of internal strife but are now recovering, have been invited to a July 24 meeting in Russia to discuss whether their production has stabilized, Kuwait’s Oil Minister Issam Almarzooq said in Istanbul. BNP Paribas SA sharply reduced its price forecasts for this year and next because supply growth elsewhere is diluting the impact of the OPEC-led curbs. Oil in New York and London remains in a bear market amid concerns elevated global oil inventories and rising supply will offset curbs by the Organization of Petroleum Exporting Countries and its partners including Russia. Libya and Nigeria together added 440,000 barrels a day of production in May and June as fields restarted, according to data compiled by Bloomberg. It’s premature to talk about deepening output cuts, OPEC Secretary-General Mohammad Barkindo said in Istanbul. Click Read More below for more of the story.