OIL HITS 8-MONTH HIGH ON A SLOW MARCH TO $60, ANALYSTS SAY |
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The price of U.S. oil jumped to an eight-month high Wednesday amid optimism about a coronavirus vaccine and a belief that OPEC and its allies will extend production cuts next week.
The enthusiasm has led to a prediction that oil prices could approach pre-pandemic levels by summer and boost Houston’s struggling oil and gas industry, which has shed tens of thousands of jobs during the downturn.
West Texas Intermediate, the U.S. benchmark, rose 3.6 percent Wednesday to settle at $45.62 a barrel, extending its recent rally and lifting hopes for a quicker recovery from the worst oil bust in decades. If the Organization of the Petroleum Exporting Countries and its allies, which meet Tuesday, extend by three months the production cuts of 7.7 million barrels per day, crude prices are likely to rise, analysts said.
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TEXAS MANUFACTURING EXPANSION MODERATES |
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Texas factory activity expanded in November for the sixth consecutive month, though at a markedly slower pace, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 25.5 to 7.2, indicating a deceleration in output growth.
Other measures of manufacturing activity also point to slower growth this month, as the indexes remained positive but came in below last month’s readings. The new orders index dropped 13 points to 7.2, and the growth rate of orders index fell five points to 9.7. The capacity utilization index dropped from 23.0 to 6.9, and the shipments index fell from 21.9 to 13.7.
Perceptions of broader business conditions continued to improve in November, though the indexes retreated from their October levels. The general business activity index remained positive but fell from 19.8 to 12.0. Similarly, the company outlook index fell from 17.8 to 11.0. Uncertainty regarding companies’ outlooks continued to rise, though the index declined from 11.0 to 7.2.
Labor market measures indicated stronger growth in employment and work hours. The employment index ticked up three points to 11.7, suggesting a slight pickup in hiring. Twenty-five percent of firms noted net hiring, while 13 percent noted net layoffs. The hours worked index moved up from 3.7 to 9.7.
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PANDEMIC WORSENING FOOD INSECURITY |
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Along with causing higher rates of unemployment and poverty, the COVID-19 pandemic has also pushed more people into a struggle to buy the basics, including food.
Grocery store food prices have gone up only about 5% since January 2019, but with so many people out of work, food banks have seen a surge in demand, said Zoë Plakias, an assistant professor of agricultural, environmental and development economics at The Ohio State University College of Food, Agricultural & Environmental Sciences (CFAES).
While facing an increasing demand, food banks have also received fewer food donations from grocery stores that give their excess products. When stores can’t keep their shelves stocked, less may be available for donation, Plakias said.
With many incomes reduced during the pandemic, more people are taking advantage of the Supplemental Nutrition Assistance Program (SNAP), previously known as food stamps, and new food aid programs have been started.
However, that’s not enough to meet the need, Plakias said.
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UPDATE ON AMERICAN TRAVEL IN THE PERIOD OF CORONAVIRUS—WEEK OF NOVEMBER 30TH |
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Nearly 14% of Americans report they took a trip for Thanksgiving 2020. Although government-imposed restrictions and virus anxieties are acting as a depressant on travel sentiment right now, 44% of American travelers agree they are taking a major vacation after a COVID-19 vaccine becomes available, and Americans’ Destination Hot List is looking nearly identical to pre-pandemic times.
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WHAT WE'RE READING
Abilene Shoppers buy local on Small Business Saturday
Small Business Saturday is a day for people in the Abilene community to place an emphasis on supporting the local economy.
Abilene city manager: Residents need to do all they can to combat COVID
City Manager Robert Hanna said Abilene residents should do all they can to help keep COVID-19 numbers low, and that he was not surprised to see local numbers surge, as they have elsewhere.
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DEC 3 TEXAS CONFERENCE FOR EMPLOYERS PRESENTS LUNCHTIME LIVE!
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DEC 18 GROW WITH GOOGLE WEBINAR - MAKE BETTER BUSINESS DECISIONS WITH ANALYTICS - PART 2
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