U.S. DEFICIT $100.6 BLN
BEA - The U.S. current-account deficit decreased to $100.6 billion (preliminary) in the third quarter of 2017 from $124.4 billion (revised) in the second quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit decreased to 2.1 percent of current-dollar gross domestic product (GDP) from 2.6 percent in the second quarter.
The $23.8 billion decrease in the current-account deficit reflected decreases in the deficits on secondary income and goods and increases in the surpluses on primary income and services.
Exports of goods and services and income receipts
Exports of goods and services and income receipts increased $23.4 billion in the third quarter to $858.7 billion.
* Primary income receipts increased $9.4 billion to $234.5 billion, mostly reflecting increases in portfolio investment income and in direct investment income.
* Secondary income receipts increased $6.9 billion to $41.1 billion, mostly reflecting an increase in U.S. government transfers, primarily fines and penalties.
* Goods exports increased $5.2 billion to $388.1 billion, mostly reflecting an increase in capital goods except automotive, primarily civilian aircraft, engines, and parts and telecommunications equipment.
Imports of goods and services and income payments
Imports of goods and services and income payments decreased $0.4 billion to $959.2 billion.
* Secondary income payments decreased $3.0 billion to $64.3 billion, mostly reflecting a decrease in private transfers, primarily fines and penalties.
* Primary income payments increased $2.8 billion to $177.5 billion, reflecting increases in portfolio investment income and in other investment income.
Capital transfer receipts were $24.9 billion in the third quarter. The transactions reflected receipts from foreign insurance companies for losses resulting from hurricanes Harvey, Irma, and Maria.
Net U.S. borrowing measured by financial-account transactions was $105.6 billion in the third quarter of 2017, a decrease from net borrowing of $114.4 billion in the second quarter.
Net U.S. acquisition of financial assets excluding financial derivatives decreased $7.0 billion in the third quarter to $337.9 billion.
* Net U.S. acquisition of direct investment assets decreased $13.9 billion to $76.7 billion, reflecting a decrease in net acquisition of equity assets.
* Net U.S. acquisition of portfolio investment assets decreased $10.9 billion to $175.6 billion, reflecting a decrease in net U.S. purchases of equity and investment fund shares.
* Net U.S. acquisition of other investment assets increased $18.0 billion to $85.6 billion, partly offsetting the decreases in net acquisition of direct investment assets and in net acquisition of portfolio investment assets. The increase in net acquisition of other investment assets reflected an increase in net acquisition of currency and deposits.
Net U.S. incurrence of liabilities excluding financial derivatives decreased $6.5 billion to $462.1 billion.
* Net U.S. incurrence of portfolio investment liabilities decreased $7.2 billion to $284.0 billion, reflecting a decrease in net foreign purchases of U.S. debt securities.
* Net U.S. incurrence of other investment liabilities decreased $4.0 billion to $82.3 billion, reflecting largely offsetting changes in transactions in deposit and loan liabilities. In deposits, transactions shifted to net foreign withdrawal of deposits in the United States in the third quarter from net foreign placement in the second quarter. In loans, transactions shifted to net U.S. incurrence from net U.S. repayment.
* Net U.S. incurrence of direct investment liabilities increased $4.7 billion to $95.8 billion, partly offsetting the decreases in net incurrence of portfolio investment liabilities and in net incurrence of other investment liabilities. The increase in net incurrence of direct investment liabilities reflected an increase in net incurrence of equity liabilities.
Transactions in financial derivatives other than reserves reflected third-quarter net lending of $18.6 billion, an increase of $9.3 billion from the second quarter.
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U.S. EIA - Energy companies’ free cash flow—the difference between cash from operations and capital expenditure—was $119 billion for the four quarters ending June 30, 2018, the largest four-quarter sum during 2013–18 Companies reduced debt for seven consecutive quarters, contributing to the lowest long-term debt-to-equity ratio since third-quarter 2014
OPEC - Total oil demand for 2018 is now estimated at 98.82 mb/d. In 2019, world oil demand growth is forecast to rise by 1.41 mb/d. Total world oil demand in 2019 is now projected to surpass 100 mb/d for the first time and reach 100.23 mb/d.
ARAB NEWS - Oil exports from southern Iraq are heading for a record high this month, two industry sources said, adding to signs that OPEC’s second-largest producer is following through on a deal to raise supply and local unrest is not affecting shipments.
PLATTS - The International Energy Agency expects the US to account for 75% of the global growth in natural gas exports over the next five years, a bullish outlook for LNG developers facing challenges at home getting projects off the ground and abroad with tariffs affecting trade flows.