News Briefs - Jan. 16
The Latest Headlines:
- Philly Fed Report Shows Slower Growth
- Low Crude Stockpiles Threaten Regional Fuel Supplies
- Calif. Officials Underestimate Emissions
- Government to Fund Coal-to-Diesel Project
- Consumer Prices Show Slight Growth
- Blix's Comments Push Crude Prices Higher
- Initial Jobless Claims Fall to 360,000
- Low Crude Stockpiles Threaten Regional Fuel Supplies
Philly Fed Report Shows Slower Growth
The Federal Reserve Bank of Philadelphia said that its general economic index indicated growth in January, but it was not as robust as the growth it reported in December.The Philly Fed’s index slipped to 11.2 from 11.3 in December, but any positive figure shows growth.
The report showed strong growth in new orders and new shipments, prompting analysts to say that manufacturing in general appears to be improving, Bloomberg reported.
Low Crude Stockpiles Threaten Regional Fuel Supplies
As crude oil inventories in the United States tighten, regional supply disruptions could develop, the Wall Street Journal reported Thursday.Supply disruptions could lead to regional price spikes, which could put a squeeze on trucking companies.
Despite the threat of low supplies and regional disruptions, officials say that it is still too early to tap the Strategic Petroleum Reserve, the Journal reported.
The cold winter in Europe and the United States, coupled with geopolitical forces have combined to drain U.S. oil reserves.
Oil stockpiles have dwindled to about 272 million barrels, the Journal said. In 1998, the National Petroleum Council, an advisory group to the Energy Department, identified 270 million barrels as the level at which supply troubles could start occurring. Transport Topics
Calif. Officials Underestimate Emissions
Air quality officials in California said that they have underestimated vehicle emissions by nearly 30% and as a result, they won’t be able to clean up air pollutants by 2010 as mandated by federal law, the Associated Press reported Thursday.Steps are being taken across the state, AP said, but the reduction of the two most common pollutants – ozone and haze – is going slower than officials had hoped.
The revised vehicle emissions levels were reported in the preliminary draft of the state’s 2003 air quality management plan, AP said.
Jack Broadbent, director of air programs in California for the Environmental Protection Agency, said that he has concern and alarm about the situation and the EPA will have to move aggressively to combat meet the deadlines. Transport Topics
Government to Fund Coal-to-Diesel Project
The Energy Department has approved a $100 million grant to a startup power company to try and convert coal wastes to diesel fuel for commercial use, the Associated Press reported Wednesday.The grant to Waste Management and Processors Inc., based in Gliberton, Pa., would help fund research into converting raw anthracite coal byproduct into commercial diesel fuel, AP said.
AP said the project could produce as much as 5,000 barrels of diesel fuel per day.
Sen. Rick Santorum (R-Penn.) said that the project “could be the opening wedge for becoming independent of OPEC oil.”
In addition to the $100 million government grant, WMPI is financed through the state of Pennsylvania and several private companies, AP said. Transport Topics
Consumer Prices Show Slight Growth
The prices U.S. consumers paid in December rose 0.1%, held back by discounted cars, computers and clothing, the Labor Department reported Thursday.The consumer price index, the most closely monitored gauge of inflation, showed that the economy has little to no inflationary pressure on it, analysts told Bloomberg News.
Low inflation will allow the Federal Reserve to keep interest rates at their current 42-year lows to help spur investment and spending.
The so-called "core" CPI, which excludes the costs of food and energy, also rose by 0.1%. It rose 1.9% in 2002, the smallest increase in three years, Labor said.
The prices of new vehicles fell 0.4% in December. That, combined with declines in computer and clothing prices, held the CPI back, Labor reported. Transport Topics
Blix's Comments Push Crude Prices Higher
The price of crude oil rose for the sixth straight day after the United Nations’ chief weapons inspector said the Iraqi government must do more to cooperate with inspectors, Bloomberg reportedHans Blix said that Iraq must be “active” to convince the UN Security Council that it does not have any weapons of mass destruction, Bloomberg reported.
Concern that a war in Iraq could cause a supply disruption has helped push the price of oil to two-year highs recently.
In electronic trading Thursday on the New York Mercantile Exchange, the price of crude oil for February delivery rose 65 cents a barrel to $33.86. Transport Topics
Initial Jobless Claims Fall to 360,000
The number of U.S. workers applying for unemployment benefits for the first time fell 32,000 to 360,000, the Labor Department said Thursday.Upbeat employment data can have a positive impact on consumer and business confidence and spur spending. Trucking companies thrive when businesses and consumers make purchases and need goods delivered.
The decline in claims pushed claims to their lowest level since Nov. 30, 2002, when 358,000 people filed claims for the first time.
The four-week moving average for initial claims fell to 387,500 from 407,000, Labor said. The four-week moving average is a device used to smooth out the volatility in the week-to-week reports. Transport Topics
