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Market roundup | Record US oil exports poised for more growth

LiveMint logoLiveMint 27-07-2017 Livemint

US refineries are producing more fuel than ever as they seek to meet rising demand from overseas, rather than the drivers on nearby roadways. Last year, the US became the world’s top net exporter of fuel, an outgrowth of booming domestic production since the shale oil revolution started in 2010. That’s a fundamental shift from the traditional US role in global markets as a top importer and consumer.

Net exports are on track to hit another record in 2017, making foreign fuel markets increasingly important for the future growth prospects and profit margins of US refiners. Shale oil producers have provided refiners with abundant and cheap domestic crude oil supplies, giving them the raw material they need to produce internationally competitive fuel.

The nation set a record in 2016 by sending a net 2.5 million barrels per day of petroleum products to foreign markets. Now, the government of President Donald Trump is seeking to deregulate oil and gas production to further leverage rising US exports for international political gain—a policy Trump calls “energy dominance”. Reuters

Changes in Nifty sector weights since inception

In March 1996, consumer and public sector banks had the highest weights in Nifty, said Motilal Oswal Securities Ltd in a report on 26 July. “Private banks had a meagre 0.4% weight in the index then, with HDFC Bank as the sole representative. Today, private banks account for the maximum weight at 23.9%, while PSU (public sector) banks form just 3.3% of the index,” pointed out the brokerage firm.

On the other hand, consumer sector’s weight has shrunk to 10%. Some of the consumer companies that were part of the Nifty in 1996 (Brooke Bond, Ponds) have got merged/acquired, it said. Textiles and chemicals have no representation in the Nifty today. “Technology and telecom sectors, which were still in their infancy in mid-90s and had no representation in Nifty then, now account for 14% of the index,” added Motilal Oswal.

Efficiency levels of Indian ports improving

The efficiency of major Indian ports has shown a marked increase over the last five years. One of the gauges of efficiency, the average turnaround time or the time taken to load or unload a vessel at the country’s major ports has seen a gradual decline over the years, notes Icra Ltd in a research note.

The average turnaround time for all major ports has improved to 3.44 days for fiscal year 2017 from 4.29 days in FY13. This was even higher at 5.29 days in FY11, it added. There has been a steady improvement every year, notes Icra, adding that the most efficient was Cochin port with a turnaround time of 1.99 days. Paradip is the least efficient with a turnaround time of 4.99 days.

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