News Briefs - Sept. 26
The Latest Headlines:
- Consumer Survey Shows Softening Confidence
- Crude Oil Falls After Two-Day Spike
- Energy Bill May Provide Shelter for MTBE Makers
- Intermodal Rail Loadings Fall
- Daimler, Hyundai Form Truck Venture, Paper Says
- OPEC Output Increased in September
- Crude Oil Falls After Two-Day Spike
Consumer Survey Shows Softening Confidence
Consumer sentiment fell in September, according to a survey by the University of Michigan.The final index of consumer sentiment fell to 87.7, below forecasts of 88.5 and August’s reading of 89.3.
Consumer sentiment is still far higher than it was at the start of the Iraq War, when it hit a nine-year low of 77.6.
Crude Oil Falls After Two-Day Spike
After two days of price increases following an announcement of a production cut by OPEC, crude oil prices fell on Friday, Bloomberg News reported.On the New York Mercantile Exchange, the price of crude oil for November delivery fell 13 cents to $28.16 barrel, Bloomberg said.
The Organization of Petroleum Exporting Countries said Wednesday that it would trim production of oil by 900,000 barrels per day, sparking a two-day runup in crude prices. Transport Topics
Energy Bill May Provide Shelter for MTBE Makers
The Oxygenated Fuels Association said it believes the energy bill that is currently working its way through Congress will provide protection for manufacturers of MTBE, a gasoline additive, the New York Times reported.Republicans writing the legislation are still haggling over the details of how to safeguard manufacturers of methyl tertiary butyl ether from lawsuits, the Times said. MTBE has been blamed for groundwater contamination, the paper said.
OFA said in a memo that it is less certain that the bill will include a timetable for an outright ban of the chemical, the Times said. The Senate has been seeking such a timetable.
Some members of Congress and conservation groups do not feel the protection is necessary and local governments and water system operators oppose the plan. Transport Topics
Intermodal Rail Loadings Fall
The number of intermodal rail loadings fell 1.5% in the week ended Sept. 20, the Association of American Railroads said last week.Intermodal container loadings fell 3.3% to 147,954 from 153,036 in the same week last year. Loadings of trailers rose, however, to 54,613 in the week of Sept. 20 from 52,680 the previous year.
Intermodal rail service is the segment of the industry that competes most directly with long-haul trucking.
Through 38 weeks, AAR said intermodal traffic is up 5% to 7.15 million from 6.8 million in 2002.
AAR said in its announcement that Hurricane Isabel closed down some rail operations on the East Coast.
Overall rail traffic was up during the week, AAR noted, gaining 1.7% in a year-over-year comparison. The total number of all rail loadings fell 0.3% compared to last year through 38 weeks to 12.3 million. Transport Topics
Daimler, Hyundai Form Truck Venture, Paper Says
DaimlerChrysler AG will begin manufacturing trucks in Asia through a joint venture with South Korea’s Hyundai Motor Co., the German newspaper Handelsblatt reported.The new company, to be named Daimler Hyundai Truck Corp., will be formed in October, Bloomberg News reported.
Daimler has agreed to guarantee the jobs of South Korean employees, the paper said. Transport Topics
OPEC Output Increased in September
OPEC, supplier of nearly a third of the world’s oil, boosted output by about 2% in September, Bloomberg reported, citing an independent consultant.PetroLogistics, an industry consultant said the 11-nation cartel averaged 27.3 million barrels a day during the month, up 500,000 barrels from its output in August, Bloomberg reported.
The Organization of Petroleum Exporting Countries set a limit of 25.4 million barrels a day for 10 of its members, Bloomberg said. Iraq’s output is not currently limited by OPEC. Transport Topics
Ìý