05/07/2019 | Press release | Distributed by Public on 05/07/2019 08:52
Oil prices fell by around 2.5 percent at the start of this week, largely due to President Trump tariff threats against China. However, the U.S. sending out warships to the Middle East, possibly an escalation amidst growing tensions with Iran, can further create volatility in oil prices. This development comes in after the waivers given on sanctions expired last week, with the U.S. continuing efforts to drive Iranian oil exports to zero.
However, if the U.S. government wants to keep crude oil prices low, mounting an offensive against Iran could be counterproductive. But going by the market volatility, it looks like creating new trade tariffs weakens oil prices, while sanctions like the one in Iran and the Venezuela crisis seems to be boosting rates. The U.S. needs to walk a tightrope, balancing its trade tariff discussions with the sanctions it levies on Iran, while also making sure its shale oil production levels reach greater heights and help supplement any reduction in global oil production.
Did you know?
CBRE predicts warehouses and distribution centers will add 452,000 workers by next year - and much of that growth will be closer to big cities, as companies invest more and more money in fast delivery.
'Markets had expected a quick agreement, and now seem shocked by the possibility of a prolonged economic conflict.'
- Brock Silvers, CEO of Kaiyuan Capital, a Shanghai-based advisory firm, while commenting on Chinese share prices sinking by nearly 6 percent this Monday following President Trump's tariffs threat.
In other news
Oil prices under pressure from US-China trade dispute, market remains tense
Oil prices were under pressure on Tuesday from concerns the escalating Sino-U.S. trade dispute could slow the global economy, while U.S. sanctions on crude exporters Iran and Venezuela helped keep the market on edge. (CNBC)
Dry bulk market: the case for the US coal exports to China trade
While the US-China trade friction of the past few months has, undoubtedly, hurt shipping in more ways than one, it seems that some good can also be made of it, especially if a sustainable agreement can be reached. (Hellenic Shipping News)
Grocery startup BigBasket becomes India's newest unicorn with new $150M investment
BigBasket, a startup that delivers groceries and perishables across the country, raised $150 million for its fight against rivals Walmart's Flipkart, Amazon and hyperlocal startups Swiggy and Dunzo. (TechCrunch)
Zenlabs awarded $4.8 million for fast-charging EV battery technology development
The company is focused on high energy density lithium-ion cell development. (CleanTechnica)
PepsiCo blockchain trial brings 28% boost in supply chain efficiency
Dubbed 'Project Proton,' the trial set out to examine if blockchain could address 'industry challenges' in programmatic advertising. (Coindesk)
A lot has been spoken about drone deliveries, but as it is with autonomous driving technology, drones might be a great idea across certain use cases, and not be cut out for the rest. For instance, drones can be used to haul emergency medicines to regions that are not connected by road - like in a desert or a mountainous area. However, drones might not be a great option to work as a last-mile delivery system for the ecommerce supply chain, especially in urban spaces.
For one, drones create tremendous noise when they fly, and with products likely flying in every minute, the noise levels within relatively dense neighborhoods will be unbearable - similar to living next to a train hub or an airport. Constant exposure to noise would also affect the physical and mental health of people who live in the region.
Though the advancements in battery technology do allow drones to use electric motors rather than the gasoline ones, the buzzing noise that a drone creates due to its high-frequency rotors will still be present. Also, there always is the possibility of territorial birds identifying drones as intruders and turning aggressive - only to get injured or down the drone.
Hammer down everyone!
Image sourced from Pixabay
The post Today's Pickup: oil prices volatile over Iran crisis and trade tariffs appeared first on FreightWaves.