FWIW German consumer spending surged in January, as did consumer confidence, as falling oil prices finally filter through to their wallets.
UPS warned... for the Christmas season... so they make up excuses and say its mismanaged.... to many temps..... their fuel cost... largest cost other than people was more than 25% lower and they missed... 25% saving on fuel should have more than offset temp hires who get no benefits
That says there were not enough packages
So that tells me that lower fuel failed to stimulate the economy in 2 ways... retail spending and transportation costs
I read that the last time 'consumer confidence' was this high was right before the stock market plunge in 2007/2008. I also read that even with the plunge in oil, the Dow transports index has fallen 2% the past month or so. Lots of very strange indicators showing up everywhere. Gotta say it has me thinking of wealth preservation again.
I did not know that...hence my post. All I am sure of is I am tired of seeing their #$%$ reported as financial news. Any way to screen them out on Yahoo?
good point about utilities raising rates- here in WIsconsin, rate rises are in part because the utilities have very "cozy" relations with the public utility commissioners, they can make claims (of needing to revamp plants, etc) that go unchallenged and allow perhaps unseemlly rate increases to go through
gasoline was not near its lows in decemeber- gasoline just bottomed a few days ago- and it takes time for the money charged on credit card statements to get paid off, it takes time for the lower cost to consumers to filter through to the bottom line. How can lower gasoline pricesnot stimulate consumer spending, especially for lower income earners (which is most of the nation, now, really)
as for global recession/slowdown in china, japan, europe- I agree that is a concern, but that weakness is also leading the US dollar to come down off its highs (as traders reassess their expectation in a rise in US interest rates) , and that will give relief to the exporters that are showing weakness in this seasons earnings report , and to oil prices
lots of moving parts
" consumer confidence is surging right now"
That's what they were telling us in Nov and December yet retail sales were down in Dec... Christmas.... when oil was at its lowest
So no... Im not a believer that energy can go down and it be the sole driver an improved economy
Obviously there are far more things at work such as decline in global demand.... which could indicate global recession (need I say Europe... China... Russia) will have a far greater contagion affect on the US economy than US housewives spending extra cash saved at the pump at Bed Bath and Beyond or some clothing retailer..... on ever cheaper Chinese made goods
I will also ask in return why utilities have been raising rates in the current environment.... Where is the industrial savings when the cost of electric and Nat Gas is actually rising to end users
National Grid is raising rates in the NE when they are buying gas from the Marcellus for ~$1 BTU... and NO media is even covering this contradiction
PSE&G is raising rates while it whines about the cost of fuel to produce electric
Cushing inventory is growing at close to 10% a week and is currently at 37m bbl... if todays rpt grows at the same trend we will be at 40+m.... while not record territory its filling fast.... certainly not empting out
Oil stores in this country are at 80 yr highs... that does not bode well for the producers... especially when our great ally the Saudi's continue to sell Brent at a $4+ discount (at the port so that's after transportation) that undercuts WTI.... why would a refiner pay more for WTI when it costs them more to refine?
Its horrible policy that allows this to continue... like I said its economic warfare.... and the thing that bothers me most is the fiasco started due to sanctions on Russia and Iran.... those countries will last longer than the smaller E&Ps... and that's gonna have an affect on mid stream pipes...
Further evidence is what happened to ETP since it announced its merger with Regency... and what should be of great concern is Regency and ETP have a nice project in West Texas where the cost to produce is cheap... yet a driver of the deal is worries over the cost of production at E&Ps reducing flow
Now may be a great time to merge in assets... but I believe current policy will drive the energy sector including pipelines lower
and not a fan of government... especially foreign policy having such a profound affect on domestic energy production
"You're the fool. Do the research"
"You're real weak, dude"
Just saying. But I do agree everyone needs to do their own research and avoid programs like Zach's or the Street. Let's be nice, huh?
Mktply - There is simply a situation where Cushing emptied out and the Gulf is full. Also Seaway expansion is now 100% on line via looping and there is more capacity than is needed until exports ramp up. Also starting some of the down time for annual maintainance. No worries.
Enterprise bought Teppco several years ago. Teppco's IPO occurred about 1989 or 1990 as one of the early mlp offerings. I bought Teppco and with all of the splits and buyouts now have EPD units that cost between 3 and 4 dollars. Forget the company name, but Teppco's assets included the first pipeline built (during world war 2) to transport fuel for the war efforts. Might have been Texas Eastern?
why do so many analysts call the drop in energy price (US is a net importer) a boon to the economy? Retail, transportation, auto, chemical industries will all benefit, no?
yes energy jobs are better paying than just abo0ut any retail job outside of management, and the ancillary loss of jobs in frac sand mines and companies that supply the energy industry etc could also be significant at least for the short/medium term (hard to know longer term what energy prices and the marginal cost of production in the US will be, and thus US energy production, as technology and the global supply/demand balance evolves) but consumer confidence is surging right now, that should eventually translate into increased consumption which represents 2/3 of US GDP
The programming content of PBS has shifted since the Koch's ramped PBS funding, notice that? And the PBS funding is a classic case of "watch this, this is what I'm doing" while, as quietly as they can, Koch's are funding ALEC, AFP, and cranking dark pool money into political contributions. The Koch's are suing california, to keep their political campaign donations (which far outscale anything they give to charity) secret
understand their methods, and you will better understand their secret agenda
arbtrdr - I know the first delivery of light crude to Japan from EPD (PDX-oil )was Nov.27th but don't know the shipper as I wrote above. I am buying shippers, mainly LNG - LP but oil tankers are also being used as storage vessels and making $$$$. The far east will be buying mega LP from the U.S. over the next several years and someone will be delivering it. I have been buying NVGS - GLNG and NNA. NVGS is one of my favorites at there current price. I think Cramer mentioned them a while back. W.E.J.
They did buy OILT but I still don't see they own Oil hauling vessels. I know Japan received there first delivery of light crude from EPD (PXD oil) on Nov.27th but I can't find who delivered it. What shipper. I am still trying to find out. Could be Japan sent the vessel. I haven't seen any contracts concerning the shipper. I am still looking.
I can see you are eager, however, less than a month doesn't establish a trend even though you might be correct as many have predicted for the years ahead.