Title : Market Continues On Its Sugar High -- June 2, 2017
link : Market Continues On Its Sugar High -- June 2, 2017
Market Continues On Its Sugar High -- June 2, 2017
Jobs: forecast, 183K added to payroll jobsEconomy: US factory activiyt edges up; private payrolls surge. Some analysts wonder if the 253K ADP number yesterday was "real." If accurate, people talking about "full employment." "Running out of bodies."
WTI: drops again. Down 2%. Below $48.
NDIC: parts of the site are down (again). Right now, it looks like just "Active Drilling Rigs" is not coming up.
Market futures:
- Dow 30: 71
- Nasdaq: up 18.25
- S & P 500: 5.25
- Larry Summers: "sugar high" -- said it was a "sugar high" back in December, 2016 -- CNBC, certainly there must be some "statute of limitations"
RBN Energy: continuing series on Rover and other Marcellus/Utica takeaway projects ot he midwest, Canada.
REX’s full-scale reversal was a watershed for capacity-constrained Marcellus/Utica producers. Ohio has been the fastest growing producing area within the Northeast over the last couple of years, rocketing 3.0 Bcf/d higher between early 2014 and January 2017. That’s about 36% of overall Northeast production growth during that period.
As big as the REX reversal has been for Appalachia gas production, additional pipeline projects will more than double that capacity by the end of this year, marking the next watershed for Northeast producers.
By far the single largest expansion — the motherlode, so to speak — of takeaway capacity on the radar currently, not just for the Midwest corridor but for the Northeast as a whole, is Energy Transfer Partners’ (ETP) 713-mile, 42-inch-diameter Rover Pipeline.
Rover Pipeline — a joint venture of ETP and Traverse Midstream Partners — will pick up as much as 3.25 Bcf/d of gas from processing plants in West Virginia, southeastern Ohio and western Pennsylvania and deliver nearly 70% of that to interconnects at the Midwest Hub near Defiance, OH, by July 2017 (phase I). From there, the pipe will turn north and head to the Michigan and Dawn, Ontario, market areas via an interconnect with the Vector Pipeline in Livingston County, MI, by November 2017 (phase II).
The project, which is backed primarily by producers, is expected to unleash constrained Marcellus/Utica production into the U.S. market. Rover also is critical to plans by ETP to make more of its Trunkline and Panhandle Eastern Pipeline bidirectionality to allow delivery of more Marcellus/Utica gas to the Gulf Coast and other markets.
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