MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for October 28^th

Updated at 5:00 PM ET 

HEADLINES:

— API: Crude Stocks Fall; Gasoline, Distillates Drop More

— BTS: Aug North American Freight Dips 2.5% Y-o-Y to $133.4B

— EnCap Closes $2B Upstream Gas Fund for PennEnergy

— Macquarie Commits $450M for Texas Gas-Fired Power Project

— EIA: U.S. Gasoline Rises 1.6cts to $3.035 Gallon

— EIA: U.S. Diesel Price Rises 9.8cts on Week

NEWS:

API: Crude Stocks Fall; Gasoline, Distillates Drop More

U.S. crude oil inventories declined for a second straight week during the week ended October 25, with gasoline and distillate fuel stocks posting sharper draws, the American Petroleum Institute reported on Tuesday (10/28).

U.S. commercial crude oil supply fell by a net 4 million bbl last week, following a 2.98 million bbl decrease the prior week.
This was despite inventories at Cushing, Oklahoma, the delivery point for NYMEX West Texas Intermediate futures, rising by 1.7 million bbl, following a 1.15 million bbl decline the previous week, according to API.

Gasoline inventories dropped by 6.3 million bbl in the week ending October 25, compared with a 1.25 million bbl draw the previous week.
Distillate fuel stocks also fell, declining by 4.4 million bbl after a 1.82 million bbl decrease the prior week.

BTS: Aug North American Freight Dips 2.5% Y-o-Y to $133.4B

The value of North American transborder freight fell by 2.5% year-on-year in August to $133.4 billion, the Bureau of Transportation Statistics (BTS) at the U.S. Department of Transportation said Tuesday (10/28).

Goods moved between the United States and Mexico led the decline, slipping 3.9% in value to $70.9 billion while U.S.-Canada cargo slid 0.7% to $62.5 billion.

By mode of transport, trucks moved an estimated $86.4 billion of freight, marking a 4.7% decline from a year ago.

Vessels transported $9.4 billion of freight, less 4%. Railways were down 3.1% to $16.4 billion, and pipelines fell 0.9% to $9 billion.

The only category to show growth was air freight, which moved an estimated $4.9 billion of goods, registering a 4.9% increase year-over-year.

In terms of truck-borne freight, Laredo, El Paso, and Otay Mesa were the top gateways for U.S. freight flows with Mexico, while Detroit, Port Huron, and Buffalo led for Canadian-bound truck freight.

In rail freight, Laredo, Eagle Pass, and El Paso were the top rail connection points with Mexico. For Canada, the main rail links were Detroit, Port Huron, and International Falls.

For energy flows with Canada, the top pipeline regions were Chicago, Port Huron, and Minneapolis. The primary pipeline connections with Mexico were El Paso, Hidalgo, and Laredo.

For water-borne cargo, the busiest southern water port connections for energy flows were the Port of Houston, Arthur, and Texas City, while the top northern ports were the Port of Boston, Arthur, and Portland.

EnCap Closes $2B Upstream Gas Fund for PennEnergy

Private equity firm EnCap Investments announced Tuesday (10/28) that it has raised more than $2 billion through a new fund structure for natural gas developer PennEnergy Resources.

The PennEnergy Continuation Vehicle is the largest fund of its kind closed in the upstream energy sector and it will enable Pittsburgh, PA-based PennEnergy to continue drilling  and developing its gas reserves in the Marcellus Shale play, EnCap stated.

PennEnergy operates 430 producing wells generating a combined 600 MMcfd of gas in an area covering 180,000 gross acres. 

Macquarie Commits $450M for Texas Gas-Fired Power Project

Macquarie Asset Management announced on Tuesday (10/28) that it has provided $450 million in funding to Sandow Lakes Energy Station for the construction of a 1.2 GW combined cycle gas turbine (CCGT) in Lee County, Texas.

The financing secures two Siemens SGT6-9000HL gas turbines and accelerates the power project, which is designed to supply electricity to energy-intensive infrastructure, according to a company statement.

As power and transmission grids strive to maintain sufficient capacity and balance intermittent generation, demand for CCGT equipment has surged, with the timeline and delivery queue for new orders extending into the 2030s, Macquarie stated.

Sandow is expected to generate commercial power from the expedited plant from 2028 onwards. 

EIA: U.S. Gasoline Rises 1.6cts to $3.035 Gallon

Retail regular gasoline prices edged higher in the week ended October 27, led by modest increases across most major regions, data from the U.S. Energy Information Administration showed Tuesday (10/28).

The national average for retail regular gasoline increased by 1.6cts on the week to $3.035 gallon, while remaining 6.2cts lower from a year ago.

East Coast PADD 1 gasoline rose by 0.8cts to $2.91 gallon, and was down 13.5cts from last year.

Within the East Coast, New England PADD 1A fell by 1.5cts to $2.934 gallon, while staying 11cts below year-ago levels.

Central Atlantic PADD 1B held steady at $3.064 gallon, and remained down 10.6cts from a year earlier.

Lower Atlantic PADD 1C climbed by 2cts to $2.807 gallon, and stayed 15.9cts below the corresponding week of last year.

Midwest PADD 2 gasoline increased by 6.8cts to $2.873 gallon, and was 5cts below year-ago levels.

Gulf Coast PADD 3 rose by 2.4cts to $2.58 gallon, remaining down 6.6cts from last year.

Rocky Mountain PADD 4 gasoline fell by 2.5cts to $2.972 gallon, and was 22.6cts below the same week of last year.

West Coast PADD 5 declined by 6cts to $4.106 gallon but was 13.3cts higher than a year ago.

West Coast less California gasoline fell by 5.1cts to $3.827 gallon, and was up 22.7cts from last year.

EIA: U.S. Diesel Price Rises 9.8cts on Week

The national average price for retail diesel fuel climbed by 9.8cts as of Monday (10/27), snapping a four-week losing streak, with gains reported across nearly all U.S. regions, according to the latest data from the Energy Information Administration.

The national average for retail diesel fuel rose by 9.8cts to $3.718 gallon, standing 14.5cts above the price from the same week last year, EIA data on Tuesday (10/28) showed.

Midwest (PADD 2) registered the largest weekly increase, up 15.1cts to $3.715 gallon as of October 27, while standing 14.6cts higher on the year.

East Coast (PADD 1) average diesel prices increased by 4.8cts to $3.723 gallon as of October 27, while remaining 11.8cts higher than a year ago.
Central Atlantic (PADD 1B) ticked up 0.3cts to $3.881 gallon, while Lower Atlantic (PADD 1C) advanced 6.4cts to $3.642 gallon.

New England (PADD 1A) bucked the overall higher trend on the East Coast, edging 0.1cts lower to $3.933 gallon.

Gulf Coast (PADD 3) followed with a 9.4cts weekly gain to $3.35 gallon, remaining 12cts above the year-ago level.

Rocky Mountain (PADD 4) diesel prices climbed 10.1cts to $3.686 gallon, and was 3.1cts above the same week last year.

West Coast (PADD 5) average diesel prices increased by 6.4cts to $4.485 gallon, marking a 27.9cts year-on-year rise.

West Coast less California gained 8.7cts to $4.095 gallon, while California advanced 3.6cts to $4.934 gallon, both staying higher from a year ago.