AAA Daily Fuel Gauge Report for Friday, 8/12/22

Brent crude oil hit a more than three-year high on Thursday, breaking through the psychologically important $70 a barrel level for the first time since December 2014. Oil futures failed to hold the gains, selling off as the close of trading approached, with analysts warning that the market might have little room left to run. Oil prices have been supported by stronger-than-expected demand fueled by worldwide economic growth, ongoing output limits by OPEC and Russia and a series of global events that have stoked geopolitical tension. Click Read More below for additional information.

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index was unchanged in February after increasing 0.4% in January. In February, the index equaled 115.3 (2015=100) the same as January. “February was the first month that the index didn’t increase since July,” said ATA Chief Economist Bob Costello. “Despite a string of gains, the index is still off 1.8% from March 2020. The index is also off 4.2% from the all-time high in August 2019. It is important to note that ATA’s data is dominated by contract freight, not spot market. “Demand for trucking freight services remains strong, but for-hire contract carriers are capacity constrained due to the driver and equipment markets. The spot market has been surging as these carriers can’t haul all of the freight they are asked to move,” he said. “So the fact that the tonnage index hasn’t fully recovered is a supply problem, not a lack of demand. Other ATA data shows that for-hire carriers are operating around 7% fewer trucks, both company and independent contractor equipment, than prior to the pandemic.”

Beginning in April 2018, Sun Chemical and its parent company, DIC Corporation, will increase the production capacity of its DAILUBE® extreme pressure additives by 6,000 tons per annum at its eco-friendly plant in Kashima, Japan. The move will better serve customers around the globe as well as promote and deliver its trusted and market leading sulfurized extreme pressure additives into new and existing markets. Optimized for metalworking fluids used in cutting, forming and rolling, DAILUBE extreme pressure additives are light in color, low odor and available in a range of chemistries, including olefin, lard, vegetable, ester, and fatty acid. Click Read More below for additional information.