Baltic Dry Index At 1693, Down 4.5%
Baltic exchange released it’s first pricing after Christmas. Baltic Dry Index was reported down 4.5% at 1,693. Lowest reading since April 2009.
Archive for the ‘Commodities’ Category
U.S. Freight Carloads Weekly – January 3, 2011
U.S. railroads originated 256,089 carloads, up 29.3% compared with the same week in 2009 and down 13.4% compared with 5-year average. Week over week change was -5.7%.
Looks like railroad traffic is weakening more than warranted by seasonal effects.
U.S. Petroleum Weekly – December 31, 2010
Crude oil stocks fell 1.3 million barrels; Gasoline stocks decreased 2.3 million barrels; Distillate stocks rose 0.2 million barrels; Propane/propylene stocks were down 2.5 million barrels; Other oils stocks decreased 2.2 million barrels; Total crude oil and petroleum stocks were 9.2 million barrels lower for the week.
Refinery utilization rose 0.1% to 87.8%.
Implied crude oil demand fell 0.5 million barrels.
Crude oil and petroleum product net imports fell0.2 million barrels to 9.2 million barrels.
Refiners reduced crude oil stocks because use of LIFO accounting enables them to keep lower priced inventory on hand; expense higher priced one and consequently pay lower taxes. Demand also recovered a bit.
Going into new year crude oil stocks will probably rise on refiner restocking.
U.S. Natural Gas Weekly – December 30, 2010
Working gas in storage fell 136 Bcf from previous week. The consensus was at 143 Bcf.
Storage level 44 Bcf lower than same time year ago. In short a replay of last’s year oversupply.
Rig Count Weekly – December 27, 2010
Number of crude oil drilling rigs fell for 15; Number of natural gas drilling rigs fell for 10.
Dry Bulk Weekly – December 27, 2010
Baltic dry index fell 11.3% last week; Capesize Index was down 13.8%; Panamax Index fell 9.4%; Supramax Index was down 7.4%; Handysize Index fell 1.2%.
I’m getting a little bit worried but to repeat last week’s comment: Iron stockpiles & steel inventory mostly unchanged; Iron ore and steel prices stable. No indication of any major disruptions in Chinese economy. Low rates are probably byproduct of excess supply of ships and seasonal factors (weaker construction steel demand in China during winter months).
Chinese Central Bank Raised Benchmark Interest Rate
POBC raised key one-year lending rate for 0.25% to 5.81%. This was widely expected; I have wrote on this earlier and almost certain there is more of this to come.
Raising interest rates and stalling real-estate prices are a bad cocktail. I will cover China even more extensively next year, as big things could come from here.
Tanker Weekly – December 27, 2010
Baltic Dirty Tanker Index fell 0.5%; Baltic Clean Tanker Index fell 3.3%.
Cargoes for first half of January well covered; Markets activity weak because of holidays.
U.S. Freight Carloads Weekly – December 27, 2010
U.S. railroads originated 271,709 carloads, unchanged compared with the same week in 2009 and down 10.0% compared with 5-year average. Week over week change was -5.1%.
U.S. Natural Gas Weekly – December 24, 2010
Working gas in storage fell 184 Bcf from previous week. The consensus was at 180 Bcf.
Storage level higher than year ago.
U.S. Petroleum Weekly – December 23, 2010
Crude oil stocks fell 5.3 million barrels; Gasoline stocks rose 2.4 million barrels; Distillate stocks fell 0.6 million barrels; Propane/propylene stocks fell 3.5 million barrels; Other oils stocks decreased 0.3 million barrels; Total crude oil and petroleum stocks were 6.0 million barrels lower for the week.
Refinery utilization fell 0.3% to 87.7%.
Implied crude oil demand rose 0.4 million barrels.
Crude oil and petroleum product net imports rose 1.7 million barrels to 9.4 million barrels. Back to normal.
Another stockpile draw and another rise in gasoline stocks. Demand flat. Overall the crude oil stocks decrease data gives a kind of bullish tone for oil price.
Rig Count Weekly – December 20, 2010
Number of crude oil drilling rigs fell for 7; Number of natural gas drilling rigs fell for 7.
Dry Bulk Weekly – December 20, 2010
Baltic dry index fell 4.6% last week; Capesize Index was up 1.1%; Panamax Index fell 13.6%; Supramax Index was down 3.4%; Handysize Index rose 1.1%.
Iron stockpiles & steel inventory mostly unchanged; Iron ore and steel prices stable. No indication of any major disruptions in Chinese economy. Low rates are probably byproduct of excess supply of ships and seasonal factors (weaker construction steel demand in China during winter months).
Tanker Weekly – December 19, 2010
Baltic Dirty Tanker Index rose 2.4%; Baltic Clean Tanker Index fell 2.7%.
Seasonal effects (cold weather in northern hemisphere; possibility of ice forming in the Baltic Sea) in addition to bullishness in the oil markets are keeping rates at decent levels.
U.S. Freight Carloads Weekly – December 19, 2010
U.S. railroads originated 286,391 carloads, up 9.3% compared with the same week in 2009 and down 5.5% compared with 5-year average. Week over week change was -5.6%.