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Saudi Arabia is escalating its oil price war with Russia today by pledging to supply a record 12.3 million barrels a day next month, an amount 25 percent higher than last month when it produced 9.7 million barrels a day.

Kevin Jones, Trailer-Body Builder / March 9, 2020 https://www.trailer-bodybuilders.com/equipment-parts/media-gallery/21125689/the-work-truck-show-2020-gallery-truck-bodies-and-equipment/slideshow

ALL the companies in the oil sector were on sale today, including Exxon at $40. Quality companies with excellent dividends are all bargain priced, including APA, SHLX, HESM, ET and KMI.

China as a manufacturing base is larger than ever. However, due to rising labor cost for one thing, most production is for domestic consumption, as they push you to produce there as the price for selling there. Much export production has relocated over the last decade.

Remember, China never begged big business to come to China. Rather, big business intentionally off shored to enhance profitability. Just as big business, with Clinton and politicians in their pockets, arranged for NAFTA.......allowing big business to produce more cheaply in Mexico and them bring it all in tariff free. And as an added bonus, we taught China how to produce high tech product, and now they self-developing forward ahead of us.

No, that's not it at all. A rare opportunity to give payback fell at Putin's feet and he plans to use it, even if it means dissolving his OPEC relationship. Russia only needs $40 -$44 (depending on who's saying) to break even on oil. The U.S. Permian shale patch requires $60 (the Saudi's around $50). He refused OPEC's request to cut production even further, as from his perspective it would only bail out US oil that is heading for bankruptcy (the mighty Chesapeake Energy fell to just 12 cents today). Putin's thinking, why should I help the country's economy that is killing my country's economy with sanctions? Rather, let's let them feel some pain, like we've been feeling.

No. Nord Stream 2, Venezuela and a few more.

The market decline, now, has more to do with the oil price war and well placed recession concerns.

It has hit the fan ! An event of massive proportions that will effect us all. Oil futures: https://www.bloomberg.com/energy ------------------------------------------------------------------------------------------------------------------------------------------ Oil Drops 31% in Worst Loss Since Gulf War as Price Fight Erupts Bloomberg / March 8, 2020 Oil markets tumbled more than 30% after the disintegration of the OPEC+ alliance triggered an all-out price-war between Saudi Arabia and Russia that is likely to have sweeping political and economic consequences. Brent futures suffered the second-largest drop on record in the opening seconds of trading in Asia, behind only the plunge during the Gulf War in 1991. As the global oil benchmark plummeted to as low as $31.02 a barrel, Goldman Sachs Group warned prices could drop to near $20 a barrel. The cataclysmic collapse will resonate through the energy industry, from giants like Exxon Mobil to smaller shale drillers in West Texas. It will hit the budgets of oil-dependent nations from Angola to Kazakhstan and could also reshape global politics, eroding the influence of countries like Saudi Arabia. “It’s unbelievable, the market was overwhelmed by a wave of selling at the open,” said one energy consult. “OPEC+ has clearly surprised the market by engaging in a price war to gain market share.” Hammered by a collapse in demand due to the coronavirus, the oil market is sinking deeper into chaos on the prospect of a supply free-for-all. Saudi Arabia slashed its official prices by the most in at least 20 years over the weekend and signaled to buyers it would ramp up output -- an unambiguous declaration of intent to flood the market with crude. Russia said its companies were free to pump as much as they could. Aramco’s unprecedented pricing move came just hours after the talks between OPEC and its allies ended in dramatic failure. The breakup of the alliance effectively ends the cooperation between Saudi Arabia and Russia that has underpinned oil prices since 2016. The state-owned Saudi producer has privately told some market participants it plans to raise output well above 10 million barrels a day next month and could even reach a record 12 million barrels a day. Oil prices have suffered massive drops each time that Saudi Arabia has launched a price war to drive competitors out of the market. West Texas Intermediate fell 66% from late 1985 to March 1986 when the country pumped at will amid a resurgence of U.S. oil output. Brent crude briefly dropped below $10 a barrel when the kingdom had a showdown with Venezuela in the late 1990s. With oil demand already plummeting due to the economic impact of the coronavirus, traders forecast that prices will drop even further. “The oil market is now faced with two highly uncertain bearish shocks with the clear outcome of a sharp price sell-off,” said Goldman Sachs. Brent for May settlement tumbled as much as $14.25 a barrel to $31.02 on the London-based ICE Futures Europe Exchange, the biggest intra-day loss since the U.S.-led bombing of Iraq in January 1991. It pared some of those losses to trade 22% lower at $35.39 a barrel as of 8:04 a.m. in Singapore. West Texas Intermediate (WTI) crude plunged 22% to $32.22 a barrel after sliding as much as 27% to $30 a barrel just after the open. Trading was frozen for the first few minutes because of the scale of the loss. While the price crash was dramatic, for oil specialists the movements in time-spreads, options and volatility are just as remarkable. Brent’s three-month price structure widened sharply as oil for prompt delivery collapsed against later shipments. It moved deeper into contango, a sign of bearishness and oversupply, making it profitable for physical traders to buy crude and put it in storage, either in onshore tank farms or at sea on tankers. The plunge in oil also ricocheted across financial markets. U.S. equity futures plunged, along with oil currencies including the Norwegian krone and Mexican peso, while havens such as the Japanese yen and gold jumped. Shares of Australian oil producers fell over 20% in early Sydney trading. The prospect of another price war is spooking traders who will remember the crash that began in 2014, when an explosion in U.S. shale production prompted OPEC to open the spigots in an attempt to suppress prices and curtail shale output. That strategy ended in failure, with shale producers proving too resilient and Brent crude tumbling below $30 a barrel in 2016 amid a global glut. It was that crash that prompted OPEC to partner with Russia and others to curtail output and help shore up their oil-dependent economies.

As of 6 March, the global death toll was 3,404, while more than 100,000 people have been infected in more than 80 countries, according to the Johns Hopkins University Center for Systems Science and Engineering. The death toll has passed 3,000 in China, where there have been over 80,000 cases. South Korea, the nation worst hit by the outbreak outside China, has had 6,593 cases. More than 55,000 people in China have recovered from Covid-19. The mortality rate is around 2% in the epicentre of the outbreak, Hubei province, and less than that elsewhere. For comparison, seasonal flu typically has a mortality rate below 1% and is thought to cause about 400,000 deaths each year globally. SARS had a death rate of more than 10%. Severe acute respiratory syndrome (SARS) and Middle Eastern respiratory syndrome (MERS) are both caused by coronaviruses that came from animals. In 2002, SARS spread virtually unchecked to 37 countries, causing global panic, infecting more than 8,000 people and killing more than 750. MERS appears to be less easily passed from human to human, but has greater lethality, killing 35% of about 2,500 people who have been infected.

Volvo Shows Off New Mack Medium-Duty Line at Work Truck Show Heavy Duty Trucking (HDT) / March 4, 2020 Rolled out to the media in late January, the new medium-duty MD Series of trucks was publicly revealed for the first time on March 4 in Indianapolis at the NTEA’s 2020 Work Truck Show. The MD Series consists of the MD6, a Class 6 model, with a GVWR of 25,995 pounds, and the MD7, a Class 7 model, with a GVWR of 33,000 pounds. “Mack is extremely proud to reach even more customers through our medium-duty Mack MD6 and MD7 models,” said Jonathan Randall, Mack Trucks’ senior vice president of North American sales and marketing, at a media briefing on the show floor. “With these trucks, Mack now offers a complete lineup of Class 6 to 8 vehicles,” he continued. “The Mack MD Series will enable us to meet the needs of those customers desiring Mack’s legendary durability in a lighter-weight GVWR configuration.” HDT’s full report on the recent introduction of the MD Series can be read here. Also in conjunction with the show, Allison Transmission announced that its 2500 transmission will be the standard transmission. At the WTS briefing, Randall said that while full production of the medium-duties will begin at Mack’s new assembly plant near Roanoke, Virginia, in July, the truck maker started accepting orders two weeks ago. Turning to the overall commercial truck market, Randall gave his forecast of North American truck sales for 2020: 240,000 units. “Historically,” he pointed out, “that’s still a pretty strong market; it’s a reversion to the mean. “We’re still bullish on this market,” Randall continued. “For us, it’s just a shift in the product mix [that will raise sales figures].” He explained that while last year, 48% to 49% of new truck registrations were for linehaul models vs. work trucks, this year that percentage is down around 42% or $43%, which is “in favor of work trucks,” historically Mack’s bread-and-butter product. “We’ve got the best-looking iron on the road,” he added, “and we’ll continue to do things to benefit our customers’ bottom line, including keeping our focus on application excellence and bringing out new products.”

Heavy Duty Trucking (HDT) / March 5, 2020 Cummins anounced at The Work Truck Show in Indianapolis that its commitment to deliver sustainable products and lower NOx emissions continues with certification of the Cummins Westport B6.7N natural gas engine. It recently received certifications from both the U.S. Environmental Protection Agency and the California Air Resources Board. The B6.7N meets the optional Low NOx standard of 0.02 g/bhp-hr, a 90% reduction from engines operating at the current EPA NOx limit of 0.2 g/bhp-hr. "All three platforms of our natural gas product line are now 'near-zero' certified," said Tom Hodek, director sales and marketing and new product development, Cummins Westport. "We certified the ISL G back in 2016 to 0.02. In 2018, we certified the ISX12N to 0.02, and the last piece of the puzzle, the 6.7N, is now at 0.02 also. "On top of that, we are also 2027 GHG compliant. From an emissions perspective, you are not going to find a cleaner engine on the market today." Next-Generation Medium-Duty Engines Cummins introduced its next generation of medium-duty on-highway diesel and natural gas engines on Tuesday at the Work Truck Show in Indianapolis, as well as enhancements to the 2021 B6.7 and L9 diesel engines. "We focused on making the engines even more reliable, and more efficient," said Rob Neitzke, Cummins’ executive director for North American truck OEM business. Enhancements to the next generation of B6.7 and L9 engines were made with customers’ total cost of ownership in mind, Cummins said. Both engines feature extended oil drain and fuel filter replacement intervals, and a redesigned breather that is now maintenance-free. "Oil drain intervals on the B6.7 can get you up to 30,000 miles or 1,000 hours," Neitzke said. "On the L9, you can get up to 50,000 miles or 1,500 hours. Fuel filter intervals on the L9 are up to three times linger than the current product while the B6.7 interval is up to four times linger than the current product.We are also excited about the improved connectivity of the products coming into 2021," he added. Cummins’ suite of Connected Solutions is built on an open digital platform that is interconnectable with diverse environments. The portfolio offers fleet management tools and cost-saving technologies that include a suite of remote-monitoring, reporting, calibrating and servicing solutions designed to enhance the customer experience across product lifecycles. In the future, prognostics will help detect and diagnose issues early and be paired with preemptive parts procurement to streamline service experiences. "The L9, coming into 2021 still has the best power density in the industry, but we have also reduced frictional losses in the engine, further optimized combustion and now we are able to deliver fuel efficiency improvements up to 5% across the board," said Neitzke. For truck applications, the 2021 L9 base warranty is now three years / unlimited miles.

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https://www.bloomberg.com/news/articles/2020-03-07/saudi-aramco-slashes-crude-prices-kicking-off-price-war?srnd=markets-vp https://www.bloomberg.com/news/articles/2020-03-07/putin-dumps-mbs-to-start-a-war-on-america-s-shale-oil-industry

As of Friday, the United States is engaged in an economic war over oil. And stakes are extremely high.

Russia breaks Opec oil alliance as it takes on US shale Financial Times / March 7, 2020 Just as the coronavirus outbreak wreaks havoc on the oil market, Russia has spotted an opportunity to hurt rivals in the US shale patch. Moscow’s partners in OPEC now are collateral damage, and a price-sapping war for market share may follow. The three-year partnership that joined geopolitical rivals and halted the biggest crude price crash in a generation hit the buffers on Friday when Saudi Arabia-led Opec and Russia failed to agree on deeper production cuts in response to the spread of the coronavirus that has hit the global economy and its demand for oil. Russia’s view that rival North American producers would gain most from new efforts to prop up prices killed the deal. Saudi Arabia, unwilling to take on more cuts without Russia as a partner, may also now be dragged into another stand-off with US shale. Brent crude, down about 30 per cent since January, slumped a further 9 per cent to $45 a barrel on Friday after Russian energy minister Alexander Novak said producers would soon be able to pump at will, ending three years of supply cuts designed to support prices. “Of course, if there is no agreement, Saudi Arabia will produce whatever the customer asks for,” said one OPEC delegate. When asked if countries were entering into a fight over market share, he said: “It could be.” The impact on the oil price from the collapse of the Vienna negotiations could be severe, with some predicting a drop to below $30 a barrel. “This has all the hallmarks of a price war, the only thing missing is the smell of gunpowder,” said Jamie Webster, senior director at BCG’s Center for Energy Impact. Russia is not a member of Opec but now holds huge sway over oil policy after joining the cartel in making production cuts three years ago. But Moscow’s refusal to agree to deeper cuts was a deal-breaker this week, demolishing a Saudi plan to increase their size and prolong the curbs until the year-end. The kingdom’s plan was conditional on all players taking part: Russia baulked. Russia wanted more time to assess the impact of the virus on demand, said officials in Vienna. But Moscow also eyed an opportunity to damage rival US shale producers and the wider American economy. “Russia has had enough of the shale guys living off Opec-plus,” said one person familiar with negotiations, referring to the cartel and allied non-members. The Kremlin has also been riled by recent US sanctions on the trading arm of Russian energy major Rosneft and Nord Stream 2, the proposed new gas pipeline between Russia and Europe. A steeper drop in crude prices will cause widespread pain in the American oil industry. “At a time when shale producers face much tighter capital constraints to keep up output, a price war will push US oil companies already at risk of bankruptcy over the edge,” said Jason Bordoff, head of Columbia University’s Center for Global Energy Policy. The collapse of the negotiations in Vienna underscored the extent to which Russia has taken charge over OPEC decision-making despite a new push by Abdulaziz bin Salman, Saudi Arabia’s oil minister, to reassert the kingdom’s authority over the group. Privately, government officials and oil executives in Saudi Arabia see the benefits — as a low-cost producer — of taking on US shale companies which require higher oil prices to stay profitable. While that indirectly might appease president Donald Trump, who wants to keep gasoline prices in check, Saudi Arabia primarily seeks to protect its own economy. The sharp price fall after the meeting will trigger memories of the Thanksgiving Day oil crash of 2014 which wrought turmoil across international financial markets, battered the budgets of producer economies and crippled the balance sheets of some energy companies. Prices collapsed to below $30 a barrel in January 2016, prompting the kingdom to do what was once unthinkable and form a production-cutting alliance with Russia and its OPEC peers later that year. Riyadh and Moscow’s collaboration, backed by the countries’ highest authorities, was more far-reaching. They engaged in talks about corporate tie-ups and cross-border investments. They also became closer on foreign policy despite backing opposing groups in Syria. It was cemented by the visible personal bond between Mr Novak and his then-counterpart in Saudi Arabia, Khalid al-Falih, who was ousted from his post as energy minister last year in favour of the king’s son. “They don’t hate each other,” said one OPEC official of current relations between Prince Abdulaziz and Mr Novak. “But it’s not the same relationship as with Falih. There was a bromance and chemistry. There’s no chemistry now.” In January 2018, Mr Falih said the alliance would last for “decades and generations”. But in recent months, it has seemed as if two of the world’s biggest oil producers were not working from the same playbook. When Saudi Arabia wanted a rapid response to the coronavirus outbreak last month, King Salman himself made a call to President Vladimir Putin to gain his endorsement — to no avail. As forecasts for oil demand growth this year weakened, an advisory committee to OPEC and Russia initially signaled that additional cuts of 600,000 b/d would be necessary to stem oil price declines. That figure steadily increased to 1.5m b/d this week, reflecting the worsening global coronavirus conditions. This would have taken total cuts to 3.6m b/d. “The Russians had a very strange view of the market,” said a person familiar with the negotiations. “All through the meeting they said, ‘let’s wait and see, let’s wait and see’ — and said prices had already declined as far as they would decline.” Then it became clear that Russia had the US in its sights. As frustration mounted, it was left to the Azerbaijani energy minister to make the final efforts late on Friday to broker some kind of deal between Mr Novak and Prince Abdulaziz. He failed. OPEC officials maintain that the group of producers ultimately has a responsibility to stabilise the oil market. “The point is to not allow commercial stockpiles to build”, said the Opec delegate. “But this was not everyone’s opinion,” he said of Russia’s reluctance. The end of the meeting, said one official who was present, “felt like a wake”.

Around 3:00.... Another.......... From 14:10..........

3D printer ?

Will warm weather stop the spread of coronavirus? CBS News / March 5, 2020 Every year, people across America cheer the start of spring, not only because it ushers in warmer weather, but because it most often marks the end of flu season. So it stands to reason that Americans are now wondering whether spring will also serve to blunt the current coronavirus outbreak. Dr. Gregory Gray, of Duke University's Global Health Institute Division of Infectious Diseases, says the summer months may lead to a small decrease in transmission, but likely won't stop the spread of coronavirus completely. "It is hard to know," Dr. Gray said. "Routinely seen coronaviruses often wane during summer months as buildings have more air circulation, people tend to congregate less, and people are more exposed to UV light which can kill viruses." However, he said this particular coronavirus, known as SARS-CoV2, "is pretty infectious — meaning it has a high basic reproduction number — and virtually 100% of people are susceptible. My hunch is we may see a 10% to 20% slowdown in transmission, but I doubt the virus will cease infecting people during summer months." It is also important to remember that just because it starts getting warmer in the U.S. doesn't mean it's warm elsewhere. "The virus will soon be very active in both the Southern and Northern Hemispheres, which have opposing summers and winters," Gray explains. "Hence, a summer slowdown in the Northern Hemisphere may be offset with a concomitant winter increase in the Southern Hemisphere." The CDC's website says it is not yet known whether weather and temperature will impact the spread of coronavirus. It also points out that even though you are statistically less likely to get sick with cold or flu viruses during the summer, it's still possible to come down with them any time of the year. "Some other viruses, like the common cold and flu, spread more during cold weather months but that does not mean it is impossible to become sick with these viruses during other months," the CDC says. "At this time, it is not known whether the spread of COVID-19 will decrease when weather becomes warmer. There is much more to learn about the transmissibility, severity, and other features associated with COVID-19 and investigations are ongoing."