\u201cIt\u2019s better to walk alone than with a crowd going in the wrong direction.” – Diane Grant <\/p>\n\n\n\n
NO PODCAST TODAY DUE TO TECHNICAL DIFFICULTIES<\/strong><\/h4>\n\n\n\n\n\n\n\n
Weekly Jobless Down Week over Week Unexpectedly<\/strong><\/strong><\/strong><\/h3>\n\n\n\n
\n
New weekly jobless claims fell back below the 400,000 level for the first time in three weeks, resuming improvements after a brief bump higher in initial filings.<\/li>\n\n\n\n
The Department of Labor released its weekly report on new jobless claims Thursday of last week at 8:30 a.m. ET. Initial jobless claims, week ended June 26 was 364,000 vs. 388,000 expected.<\/li>\n\n\n\n
Continuing claims, week ended June 19 was 3.469 million vs. 3.340 million expected and an upwardly revised 3.413 million during prior week.<\/li>\n\n\n\n
At 364,000, new filings reached the lowest level since March 2020 with new claims coming in at about half their total from the beginning of 2021. New claims were coming in at just over 200,000 per week on average throughout 2019.<\/li>\n\n\n\n
Many economists are looking for further improvement in the coming months. This would coincide with school reopening\u2019s to help alleviate the burden of finding childcare, an increase in consumer mobility and demand over the summer, and a phase-out of federal enhanced unemployment benefits. <\/li>\n<\/ul>\n\n\n\n
Stocks up on Friday of last week and up week over week<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
The Dow closed higher on Friday of last week, up 152.82 (+0.44%) points closing out the week at 34,786.35 <\/u><\/strong>+352.51 points week over week. The S&P 500 closed higher on Friday of last week, up 32.40 points (+.75%) and closing out the week at 4,352.34,<\/u><\/strong> up +71.64 points week over week. The Nasdaq closed higher on Friday of last week, up +116.95 points (+0.81%) and closing out the week at 14,639.33,<\/u><\/strong> up +278.94 points week over week. <\/p>\n\n\n\n
In overnight trading, DOW futures traded lower and are expected to open down this morning 20 <\/strong>points <\/p>\n\n\n\n
Oil Rises for the Sixth Straight Week, however OPEC+ seem to be in disagreement. <\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h3>\n\n\n\n
Oil prices steadied on Friday of last week after OPEC+ ministers resumed talks on raising oil output the day after the United Arab Emirates blocked a deal, <\/u><\/strong>which could delay plans to pump more oil through the end of the year. OPEC+ are meeting again after UAE opposed the proposals, saying it wanted its quota to be higher, sources said. The long rally in prices could be undermined if OPEC+ nations go their separate ways and add to supply as they see fit.<\/p>\n\n\n\n
WTI crude oil closed lower on Friday of last week -$0.07 cents a barrel to settle at $75.16 a barrel, <\/u><\/strong>up $1.11 a barrel week over week. Brent crude oil for August delivery closed higher on Friday of last week gaining +$0.33 a barrel, and closing at $76.17,<\/u><\/strong> down $0.01 a barrel week over week. <\/strong><\/u><\/strong><\/p>\n\n\n\n
U.S. commercial crude oil inventories decreased by 6.7 million<\/u><\/strong> barrels week over week. At 452.3 million barrels, U.S. crude oil inventories are 6% below the five year average for this time of year.<\/p>\n\n\n\n
Total motor gasoline inventories increased by 1.5 million barrels<\/u><\/strong> week over week and are at par with the five year average for this time of year. Finished gasoline and blending components inventories both increased last week.<\/p>\n\n\n\n
Distillate fuel inventories decreased by 900,000 barrels<\/u><\/strong> week over week and are 5% below the five year average for this time of year.<\/p>\n\n\n\n
Propane\/propylene inventories increased by 1.2 million barrels<\/u><\/strong> week over week and are 17% below the five year average for this time of year.<\/p>\n\n\n\n
Total commercial petroleum inventories decreased by 4.6 million barrels last week.<\/p>\n\n\n\n
U.S. crude oil imports averaged 6.4 million barrels<\/u><\/strong> per day last week, a decrease by 500,000 barrels per day week over week. Over the past four weeks, crude oil imports averaged 6.7 million barrels per day, 2.8% more than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 790,000 barrels per day, and distillate fuel imports averaged 245,000 barrels per day<\/p>\n\n\n\n
U.S. crude oil refinery inputs averaged 16.3 million barrels per day<\/u><\/strong> during the week ending June 25, 2021 which was 187,000 barrels per day more than the previous week\u2019s average. Refineries operated at 92.9% of their operable capacity last week. Gasoline production decreased last week, averaging 9.6 million barrels per day. Distillate fuel production decreased last week, averaging 5.0 million barrels per day. <\/p>\n\n\n\n
Oil is higher in overnight trading and, as of the writing of this report, WTI is poised to open at $76.07, up $.91 per barrel from Friday\u2019s close.<\/strong><\/p>\n\n\n\n
North American Rail Traffic<\/h3>\n\n\n\n
Total North American rail volumes were up 11.4% year over year in week 25<\/u><\/strong> (U.S. +12.4%, Canada +10.0%, Mexico +4.6%) resulting in quarter to date volumes that are up 20.6% year over year and year to date volumes that are up 12.1% year over year (U.S. +13.6%, Canada +9.0%, Mexico +4.3%). 9 of the AAR’s 11 major traffic categories posted year over year increases with the largest increases coming from intermodal (+8.8%), coal (+27.9%), metallic ores & metals (+36.9%) and nonmetallic minerals (+12.4%).<\/p>\n\n\n\n
In the East, CSX\u2019s total volumes were up 13.9%,<\/u><\/strong> with the largest increases coming from intermodal (+13.1%), coal (+52.0%) and metals & products (+94.0%). NS\u2019s total volumes were up 7.9%,<\/u><\/strong> with the largest increases coming from intermodal (+3.6%), coal (+24.4%), metals & products (+52.0%) and petroleum (+71.8%).<\/p>\n\n\n\n
In the West, BN\u2019s total volumes were up 15.5%,<\/u><\/strong> with the largest increases coming from intermodal (+13.6%), coal (+21.5%) and metallic ores (+336.1%). UP\u2019s total volumes were up 12.4%,<\/u><\/strong> with the largest increases coming from intermodal (+8.1%), coal (+24.1%), chemicals (+13.3%), grain (+38.7%), stone sand & gravel (+32.5%) and petroleum (+44.8%).<\/p>\n\n\n\n
In Canada, CN\u2019s total volumes were up 14.3%, <\/u><\/strong>with the largest increases coming from intermodal (+12.1%), coal (+71.0%) and metallic ores (+16.3%). RTMs were up 14.7%. CP\u2019s total volumes were up 8.8%,<\/u><\/strong> with the largest increases coming from intermodal (+12.7%), petroleum (+68.1%) and coal (+29.5%). RTMs were up 0.5%.<\/p>\n\n\n\n
KCS\u2019s total volumes were up 12.9%,<\/u><\/strong> with the largest increases coming from coal (+66.4%), intermodal (+6.6%) and metals & products (+98.0%).<\/p>\n\n\n\n
Source: Stephens<\/em><\/strong><\/p>\n\n\n\n
Rig Count<\/h3>\n\n\n\n
North American rig count is up by 15 rigs week over week. The U.S. rig count was up 5 rigs week over week<\/u><\/strong> and up by 212 rigs year over year. The U.S. currently has 475 active rigs. Canada\u2019s rig count was up by 10 rigs week over week, and up by 118 rigs year over year<\/u><\/strong> and Canada\u2019s overall rig count is 136 active rigs. Year over year we are up 330 rigs collectively.<\/u><\/strong> International rig count that comes out at the beginning of each month was up by 8 rigs month over month but down 23 rigs you over year. International rig count stands at 758 active rigs.<\/p>\n\n\n\n
North American Rig Count Summary<\/strong><\/h3>\n\n\n
Petroleum by Rail \u2013<\/u><\/strong> The four-week rolling average of petroleum carloads carried on the six largest North American railroads rose to 23,642, <\/strong>from 23,307 a gain of 335 rail cars week over week. Canadian volumes were mixed – CN shipments declined by 1.8% while CP shipments were up by 0.8%. U.S. were mostly higher. The UP had the largest percentage increase, up by 14.3% and the NS had the largest percentage decrease down by 3.0%.<\/u><\/strong>
<\/li>\n\n\n\n
Just when you thought we heard the last on the Keystone XL pipeline by TC Energy \u2013 Well it is far from over folks <\/u><\/strong> \u2013 TC Energy plans on filing a claim under the US- Mexico- Canada free trade agreement known as the USMCA agreement related to the cancelled Key Stone XL pipeline project. The company filed a notice of intent to do so on Friday of last week. A similar suit was filed under the Obama administration but was dropped when Trump signed the necessary Presidential permit as needed. TC Energy is seeking $15.2 billion in damages against the U.S. government for its actions.
<\/li>\n\n\n\n
Folks this weekend we have not been keeping an eye on too much else \u2013<\/u><\/strong> We tried to give everyone off as much time as possible this 4th<\/sup> of July weekend at PFL and celebrated this great country with our own PFL Fireworks show. Hope you had a great one we sure did!<\/li>\n<\/ol>\n\n\n\n
![\"\"](\"https:\/\/pflpetroleum.com\/reports\/wp-content\/uploads\/2021\/07\/NARC-762021.png\")