Zacks Analyst Blog Highlights: Sunoco Inc., Tesoro Corp., Western Refining Inc., ConocoPhillips and ExxonMobil Corp.
For Immediate Release
Chicago, IL – December 11, 2009 – 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: Sunoco Inc. (SUN), Tesoro Corp. (TSO), Western Refining Inc. (WNR), ConocoPhillips (COP) and ExxonMobil Corp. (XOM).
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Here are highlights from Thursday’s Analyst Blog:
Oil Slides, Fuel Inventories Rise
The overall demand picture remains weak, as reflected by the dip in the total refined products supplied over the last four-week period, a proxy for overall petroleum demand. It fell by 3.0% from the year-earlier period, with gasoline up 1.2%, distillates (includes diesel) down 8.3% and jet fuel down 0.7%.
With gasoline and other petroleum product inventories rising last week, we take this as an indication that demand in the world's biggest economy remains slack. In particular, at this time of the year, distillates see rising demand as winter approaches in the northern hemisphere. As a result, following the bearish EIA release, oil prices fell below the $71 per barrel level, the lowest in two months. Additionally, the unexpected drop in crude stockpiles was triggered by falling imports rather than a much-awaited pick-up in oil demand.
As such, we prefer to maintain our cautious stance on oil refiners like Sunoco Inc. (SUN), Tesoro Corp. (TSO) and Western Refining Inc. (WNR), given that the overall environment for refining margins is likely to remain poor going into 2010.
Companies like ConocoPhillips (COP) and ExxonMobil Corp. (XOM) -- oil majors that have significant refining operations -- are also expected to remain under pressure until pricing and demand improve.
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Read the full analyst report on SUN
Read the full analyst report on TSO
Read the full analyst report on WNR
Read the full analyst report on COP
Read the full analyst report on XOM

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