For Immediate Release
Chicago, IL – September 01, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Exxon Mobil Corporation’s (NYSE:XOM – Free Report), Royal Dutch Shell plc’s (NYSE: – Free Report), Marathon Petroleum Corporation’s (NYSE:MPC – Free Report), Valero Energy Corporation’s (NYSE:VLO – Free Report) and Range Resources Corp. (NYSE:RRC – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Gasoline Soars on Harvey Disruption, Crude Falls Despite Big Draw
The U.S. Energy Department's inventory release showed that crude stockpiles recorded another massive drop on continued strong refinery runs. With oil supplies falling for the ninth week, investor sentiment has turned slightly positive on dissipating fears about a meltdown to sub-$40 levels. Analysts also believe that the trend, if sustained, could help tighten the market significantly.
But the positive effect from the hefty crude inventory draw was more than offset by the steadily rising domestic oil output that continues to be the biggest headwind for the market. At 9.53 million barrels a day, production is at the highest level in more than two years, thereby cancelling out cuts from OPEC and its allies. Surprise builds in refined product inventories – gasoline and distillate – added to the pessimism.
As a result, West Texas Intermediate (WTI) crude futures shed 1% (or 48 cents) to $45.96 per barrel Wednesday.
In any case, the federal data was overshadowed by the impact of Hurricane Harvey-induced shutdowns at crude production and refining infrastructure.
Gasoline Prices Jump
The Gulf of Mexico (GoM), which bore the brunt of Hurricane Harvey, has major refining infrastructures. According to the EIA, more than 45% of domestic oil refining capacity and around 51% of the nation’s natural gas processing capacity are located in the GoM.
Exxon Mobil Corporation’s (NYSE:XOM – Free Report) Baytown, Royal Dutch Shell plc’s (NYSE:RDS.A – Free Report) Deer Park, Marathon Petroleum Corporation’s (NYSE:MPC – Free Report) Galveston Bay and Valero Energy Corporation’s (NYSE:VLO – Free Report) Corpus Christi are among the facilities affected.
As a result, gasoline soared to a two-year high of $1.885 a gallon after Harvey caused weeks of disruptions at refineries in its path and shut units, creating supply shortages that will affect facilities for months.
Analysis of the EIA Data
Crude Oil:The federal government’s EIA report revealed that crude inventories slumped by 5.4 million barrels for the week ending Aug 25, following a decline of 3.3 million barrels in the previous week.
The analysts surveyed by S&P Global Platts – the leading independent commodities and energy data provider – had expected crude stocks to go down some 1.5 million barrels. Continued strength in refinery crude runs led to the bigger-than-expected stockpile draw with the world's biggest oil consumer even as domestic production rose to the highest level since July 2015.
Inventory reduction in 19 of the past 21 weeks has helped the U.S. crude market shift from year-over-year storage surplus to a deficit. At 457.8 million barrels, current crude supplies are at their lowest since January 2016 and are in the middle of the average range during this time of the year.
However, stocks at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – was up by 689,000 barrels to 57.2 million barrels.
The crude supply cover was down from 26.5 days in the previous week to 26 days. In the year-ago period, the supply cover was 31.5 days.
Gasoline:Supplies of gasoline were up for the third time in four weeks on higher production and imports. The nominal 35,000 barrels addition – contrary to the polled number of 1.9 million barrels fall in supply level – took gasoline stockpiles up to 229.9 million barrels. Despite last week’s increase, the existing stock of the most widely used petroleum product remains 0.9% below the year-earlier level but is close to the upper limit of the average range.
Distillate:Distillate fuel supplies (including diesel and heating oil) went up by 748,000 barrels last week, as opposed to analysts’ expectations for 600,000 barrels decrease in supply level. The third successive weekly rise could be attributed to fall in demand. At 149.2 million barrels, current supplies are 3.6% below the year-ago level but are in the upper half of the average range for this time of the year.
Refinery Rates: Refinery utilization jumped 1.2% from the prior week’s 12-year highs to 96.6%.
About the Weekly Petroleum Status Report
The Energy Information Administration (EIA) Petroleum Status Report, containing data of the previous week ending Friday, outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.
The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect the businesses of the companies engaged in the oil and refining industry.
Want to Own an Energy Stock Now?
If you are looking for a near-term energy play, Range Resources Corp. (NYSE:RRC – Free Report) may be a good selection. This company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of oil and gas properties primarily in the southwestern, Appalachian and Gulf Coast regions of the U.S. The 2017 Zacks Consensus Estimate for this company is 48 cents, representing some 1,487.2% earnings per share growth over 2016. Next year’s average forecast is 64 cents, pointing to another 34.6% growth.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Get the full Report on XOM - FREE
Get the full Report on MPC - FREE
Get the full Report on VLO – FREE
Get the full Report on RDS.A - FREE
Get the full Report on RRC - FREE
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
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support@zacks.com
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Exxon Mobil, Royal Dutch Shell, Marathon Petroleum, Valero Energy and Range Resources
For Immediate Release
Chicago, IL – September 01, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Exxon Mobil Corporation’s (NYSE:XOM – Free Report), Royal Dutch Shell plc’s (NYSE: – Free Report), Marathon Petroleum Corporation’s (NYSE:MPC – Free Report), Valero Energy Corporation’s (NYSE:VLO – Free Report) and Range Resources Corp. (NYSE:RRC – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Gasoline Soars on Harvey Disruption, Crude Falls Despite Big Draw
The U.S. Energy Department's inventory release showed that crude stockpiles recorded another massive drop on continued strong refinery runs. With oil supplies falling for the ninth week, investor sentiment has turned slightly positive on dissipating fears about a meltdown to sub-$40 levels. Analysts also believe that the trend, if sustained, could help tighten the market significantly.
But the positive effect from the hefty crude inventory draw was more than offset by the steadily rising domestic oil output that continues to be the biggest headwind for the market. At 9.53 million barrels a day, production is at the highest level in more than two years, thereby cancelling out cuts from OPEC and its allies. Surprise builds in refined product inventories – gasoline and distillate – added to the pessimism.
As a result, West Texas Intermediate (WTI) crude futures shed 1% (or 48 cents) to $45.96 per barrel Wednesday.
In any case, the federal data was overshadowed by the impact of Hurricane Harvey-induced shutdowns at crude production and refining infrastructure.
Gasoline Prices Jump
The Gulf of Mexico (GoM), which bore the brunt of Hurricane Harvey, has major refining infrastructures. According to the EIA, more than 45% of domestic oil refining capacity and around 51% of the nation’s natural gas processing capacity are located in the GoM.
Exxon Mobil Corporation’s (NYSE:XOM – Free Report) Baytown, Royal Dutch Shell plc’s (NYSE:RDS.A – Free Report) Deer Park, Marathon Petroleum Corporation’s (NYSE:MPC – Free Report) Galveston Bay and Valero Energy Corporation’s (NYSE:VLO – Free Report) Corpus Christi are among the facilities affected.
As a result, gasoline soared to a two-year high of $1.885 a gallon after Harvey caused weeks of disruptions at refineries in its path and shut units, creating supply shortages that will affect facilities for months.
Analysis of the EIA Data
Crude Oil:The federal government’s EIA report revealed that crude inventories slumped by 5.4 million barrels for the week ending Aug 25, following a decline of 3.3 million barrels in the previous week.
The analysts surveyed by S&P Global Platts – the leading independent commodities and energy data provider – had expected crude stocks to go down some 1.5 million barrels. Continued strength in refinery crude runs led to the bigger-than-expected stockpile draw with the world's biggest oil consumer even as domestic production rose to the highest level since July 2015.
Inventory reduction in 19 of the past 21 weeks has helped the U.S. crude market shift from year-over-year storage surplus to a deficit. At 457.8 million barrels, current crude supplies are at their lowest since January 2016 and are in the middle of the average range during this time of the year.
However, stocks at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – was up by 689,000 barrels to 57.2 million barrels.
The crude supply cover was down from 26.5 days in the previous week to 26 days. In the year-ago period, the supply cover was 31.5 days.
Gasoline:Supplies of gasoline were up for the third time in four weeks on higher production and imports. The nominal 35,000 barrels addition – contrary to the polled number of 1.9 million barrels fall in supply level – took gasoline stockpiles up to 229.9 million barrels. Despite last week’s increase, the existing stock of the most widely used petroleum product remains 0.9% below the year-earlier level but is close to the upper limit of the average range.
Distillate:Distillate fuel supplies (including diesel and heating oil) went up by 748,000 barrels last week, as opposed to analysts’ expectations for 600,000 barrels decrease in supply level. The third successive weekly rise could be attributed to fall in demand. At 149.2 million barrels, current supplies are 3.6% below the year-ago level but are in the upper half of the average range for this time of the year.
Refinery Rates: Refinery utilization jumped 1.2% from the prior week’s 12-year highs to 96.6%.
About the Weekly Petroleum Status Report
The Energy Information Administration (EIA) Petroleum Status Report, containing data of the previous week ending Friday, outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.
The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect the businesses of the companies engaged in the oil and refining industry.
Want to Own an Energy Stock Now?
If you are looking for a near-term energy play, Range Resources Corp. (NYSE:RRC – Free Report) may be a good selection. This company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of oil and gas properties primarily in the southwestern, Appalachian and Gulf Coast regions of the U.S. The 2017 Zacks Consensus Estimate for this company is 48 cents, representing some 1,487.2% earnings per share growth over 2016. Next year’s average forecast is 64 cents, pointing to another 34.6% growth.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Get the full Report on XOM - FREE
Get the full Report on MPC - FREE
Get the full Report on VLO – FREE
Get the full Report on RDS.A - FREE
Get the full Report on RRC - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.