MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for December 5th

Updated at 5:00 PM ET 

HEADLINES:

— API Joins Groups Urging Trump to Pass Year-Round E15 Sales

— Baker Hughes: North America Rig Count Up 8 on Week

— UMich: U.S. Consumer Sentiment Rebounds in December

— NFE Gets Final Greenlight on $4Bln Puerto Rico Gas Deal

NEWS:

API Joins Groups Urging Trump to Pass Year-Round E15 Sales

The American Petroleum Institute (API) announced this week that it has joined various organizations to request advance legislation for year-round, nationwide sales of the E-15. 

“Legislation allowing the year-round, nationwide sale of E15 would improve fungibility and substantially reduce many of the complexities that arise for our industries as we operate in a national marketplace,” the API said in a letter sent to U.S. President Donald Trump on Thursday (12/4) and copied to members of Congress, including House of Representatives Speaker Mike Johnson and Minority Leader Hakeem Jeffries.

Sale of E15 – a gasoline blend containing 15% ethanol and 85% gasoline –  is currently restricted in the summer months across many states due to federal air quality regulations related to its evaporative emissions.

The letter to Trump, where API was joined by groups representing ethanol producers, oil refiners, fuel marketers, travel plazas, truck stops and convenience store retailers, stated “a common goal to provide affordable, reliable liquid fuels for consumers.”

“However, our collective ability to continue to do so is being threatened by the ongoing uncertainty regarding the sale of year-round E15 and the administration of Small Refinery Exemptions (SREs) under the Renewable Fuel Standard (RFS) program,” the letter stated.

API’s own stance on the E15 had evolved over the past couple of months, with the organization initially opposing year-round sales of the gasoline with a 15% ethanol blend due to what it described as ununiformed rule making.

E15 sales are expanding across the U.S., driven by increased consumer access and funding for new retail infrastructure. But California continues to face unique challenges that slow its adoption of the fuel. Unlike the 49 U.S. states that have eliminated Stage 2 vapor recovery requirements for the E15, California maintains enhanced rules for vapor recovery systems that impact sales of the fuel.

Baker Hughes: North America Rig Count Up 8 on Week

North American drilling activity rose this week, with a net gain of eight rigs across the U.S. and Canada after the prior week’s loss of 17 rigs, Baker Hughes’ weekly rigs report released on Friday (12/5) showed.

With the adjustment, U.S. and Canadian rigs as a total stood at 740 this week, versus the prior week’s 732, the report showed.

Total rigs operating in the United States rose by five this week to 549. Even so, the total rig count was 40 below where it stood last year, according to the same data.

Also in the U.S., oil-directed rigs climbed by six to 413 week-on-week. Gas rigs fell by one to 129. Miscellaneous rigs were unchanged at seven.

In North America, land-based drilling advanced by three to 527. Offshore activity increased by one to 19. Inland waters rose by one to three. The Gulf of Mexico rig count also rose by one to 12.

Canada’s total rig count climbed by seven week-on-week to 191, with oil-directed rigs up by five to 126. Gas rigs fell by two to 65. Total rigs for Canada were three below last year’s level of 194.

UMich: U.S. Consumer Sentiment Rebounds in December

U.S. consumer sentiment rebounded in December as personal financial expectations improved, although the burden from high prices remained, the University of Michigan’s Surveys of Consumers published on Friday (12/5) said.

UMich’s Index of Consumer Sentiment rose 2.3 points to 53.3, according to preliminary data for December.

Last month, the index plummeted to 51 points, marking its lowest reading since July 2022. Year-over-year, the index was down 20.7 points, or 28%.

UMich’s Index of Consumer Expectations, which reflects the economic outlook over the next 12 months, rose 4 points to 55. That was a 7.8% increase from November, although the reading was down 25% from the same month last year. 

In contrast, UMich’s Current Economic Conditions Index, measuring sentiment about personal finances and buying conditions, continued to slide in December, slipping 0.4 points to 50.7. Year-on-year, the index was down 32.5%.

“Overall, while views of current conditions were little changed, expectations improved, led by a 13% rise in expected personal finances, with improvements visible across age, income, education, and political affiliation,” said Surveys of Consumers Director Joanne Hsu.

Notwithstanding the rebound, the December reading on expected personal finances was still nearly 12% below where it began the year, she noted.

“Consumers see modest improvements from November on a few dimensions, but the overall tenor of views is broadly somber, as consumers continue to cite the burden of high prices,” Hsu added.

Year-ahead inflation expectations fell for the fourth consecutive month to an eleven-month low of 4.1%, the December data showed. Short-run inflation expectations and inflation uncertainty, however, remained above January 2025 levels.

NFE Gets Final Greenlight on $4Bln Puerto Rico Gas Deal

New Fortress Energy (NFE) has announced it has received final approval for an approximate $4 billion deal to supply Puerto Rico with gas over a seven-year term.

The contract secures the delivery of approximately 75 trillion British thermal units of natural gas to support the island’s ongoing energy transformation initiatives, NFE said in a statement issued late Thursday (12/4).

Puerto Rico, known for experiencing constant blackouts, is moving away from oil-fired power generation, and natural gas is a key transition fuel in that transformation.

The island has a target for 100% renewable energy by 2050, and gas serves as a bridge fuel for its power grid to retire old oil plants while awaiting completion of renewable infrastructure such as solar farms and battery storage facilities.

Puerto Rico Governor Jenniffer González-Colon had previously estimated the gas deal to be worth approximately $4 billion.