Will US Crude Oil Inventories Overshadow OPEC’s Output Cuts?
OPEC’s spare crude oil production capacity rose by 960,000 bpd (barrels per day) to 2.01 MMbpd in January 2017—compared to the previous month.
US gasoline demand rose for two consecutive weeks. The rise in gasoline demand is bullish for gasoline and crude oil (SCO) (VDE) (DIG) (BNO) prices.
The API released its weekly inventory report on February 22, 2017. It estimated that US gasoline inventories fell by 0.9 MMbbls from February 10–17, 2017.
On February 22, the API released its weekly crude oil inventory report. It reported that US crude oil inventories fell by 0.88 MMbbls from February 10–17.
April WTI (West Texas Intermediate) crude oil futures contracts rose 0.9% to $54.2 per barrel in electronic trade at 3:55 AM EST on February 23, 2017.
April WTI (West Texas Intermediate) crude oil (ERX) (SCO) (PXI) futures contracts fell 1.4% and settled at $53.59 per barrel on February 22, 2017.
On February 22, the API will release its weekly crude oil inventory report. Crude oil inventories could have risen by 3,325,000 barrels from February 10–17.
Crude oil prices are trading at a 19-month high. Higher crude oil (FENY) (XES) prices can have a positive impact on oil and gas producers’ earnings.
The EIA estimates that US crude oil movement by rail rose by 801,000 barrels to 12,972,000 barrels in November 2016—compared to the previous month.
Russia’s oil production fell by ~117,000 bpd (barrels per day) in January 2017—compared to the previous month due to major producers’ production cut deal.
The EIA estimates that OPEC’s crude oil production fell by 903,000 bpd to 32.28 MMbpd in January 2017—compared to the previous month.
April WTI crude oil futures contracts rose 1% and settled at $54.33 per barrel on February 21, 2017. The bullish momentum partially supported oil prices.
Genesee & Wyoming’s (GWR) European carloads rose 11.2% YoY in January 2017.
In January 2017, Genesee & Wyoming’s (GWR) North American traffic rose 9.1% YoY, hauling ~136,000 railcars that month.
Canadian Pacific saw a 5.3% YoY drop in its international intermodal business, with volumes falling to ~10,000 containers and trailers.
Canadian Pacific’s (CP) total carloads rose a slight 1% in the week ended February 11, 2017, reaching ~30,000 railcars.
In the week ended February 11, 2017, Canadian National Railway’s (CNI) overall intermodal volumes rose 2.6%.
In the week ended February 11, 2017, Kansas City Southern (KSU) reported a YoY fall of 6.5% in its overall intermodal traffic.
In the week ended February 11, 2017, Canadian National Railway’s overall volumes rose 5.3% on a YoY basis.
In the sixth week of 2017, BNSF Railway’s (BRK-B) container traffic rose 8.4% on a YoY basis to more than 100,000 containers.