US Army Corps to Begin Environmental Study of DAPL
Stocks of the Energy Transfer group companies fell following the announcement of the environmental study of DAPL.
Overall, gold rose 8.5% in 2016 to close the year at $1,150 per ounce. Gold prices had slipped in the last two months of 2016 following Donald Trump’s presidential win.
The EIA estimates that global crude oil supply outages fell by 72,000 bpd (barrels per day) to 2.2 MMbpd (million barrels per day) in December 2016.
The EIA estimated that US gasoline demand rose by 5,000 bpd (barrels per day) to 8,470,000 bpd between December 30, 2016, and January 6, 2017.
The API released its weekly inventory report on January 18, 2017. It estimates that US gasoline inventories rose by 9.8 MMbbls from January 6–13, 2017.
On January 18, 2017, the API released its weekly crude oil inventory report. US crude oil inventories fell by ~5 MMbbls from January 6–13, 2017.
March WTI crude oil (ERX) (IEZ) (USL) (USO) (ERY) (RYE) futures contracts fell 2.6% and settled at $51.89 per barrel on January 18, 2017.
Crude oil prices have risen ~20.2% since November due to the expectation that major oil producers’ production cuts would curb oversupply in the market.
Russia is the largest crude oil producer in the world. Russia’s crude oil production was flat at 11.21 MMbpd (million barrels per day) in December 2016.
US crude oil production peaked at 9.6 MMbpd in April 2015. In September 2016, production hit 8.6 MMbpd—the lowest monthly level since March 2014.
The EIA estimates that OPEC’s crude oil production fell by 210,175 bpd (barrels per day) to 33.5 MMbpd (million barrels per day) in December 2016.
For the week ending January 6, 2017, the EIA reported that US crude oil inventories rose by 4.1 MMbbls (million barrels) to 483.1 MMbbls.
On January 17, 2017, the US Dollar Index fell 0.9% to 100.3—the lowest level in a month. The US dollar (UUP) hit a 14-year high on January 3, 2017.
According to the World Bank’s January 2017 Global Economic Prospects report, global trade growth in 2016 was the weakest since the 2009 global financial crisis.
GWR’s European carloads rose 20.3% YoY in December 2016. In the same period of 2015, GWR hauled ~72,000 railcars, as compared to ~86,000 in December 2016.
In December 2016, GWR’s North American traffic rose 1.2% YoY. GWR hauled ~128,000 railcars in December 2016, compared to ~126,000 railcars in December 2015.
Canadian Pacific’s total carloads fell 11.2% in the week ended January 7, 2017, hauling ~26,000 railcars, as compared to ~29,000 in the first week of 2016.
CP’s intermodal volumes marched forward for a few quarters, but for the week ended January 7, 2017, CP reported a 15.8% fall in overall intermodal traffic.
CNI moved ~37,000 containers in the first week of 2017, as compared to ~42,000 containers in the corresponding week of 2016.
In the week ended January 7, 2017, CNI’s overall volumes rose 1.8% YoY. Railcar volumes rose to ~57,000 units from ~56,000 units in the first week of 2016.