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U.S. Government Reports Surprise Draw in Crude Stockpiles
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The U.S. Energy Department's inventory release showed that crude stockpiles recorded a surprise weekly decline even as domestic oil production reached another all-time high. Following the data sets, front month West Texas Intermediate (WTI) crude futures moved down 0.2% (or 14 cents) to end at $63.37 per barrel yesterday.
Analysis of the EIA Data
Crude Oil: The federal government’s EIA report revealed that crude inventories fell by 4.6 million barrels for the week ending Mar 30, following an increase of 1.6 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 up some one million barrels.
Higher refinery runs and lower imports led to the surprise draw build with the world's biggest oil consumer even as domestic production reached a new record.
In particular, U.S. output rose by 27,000 barrels per day last week to nearly 10.5 million barrels per day – the most since the EIA started maintaining weekly data in 1983. In early February, oil production broke through the 10 million barrels a day threshold for the first time in nearly 50 years and has maintained the record levels thereafter.
Meanwhile, stockpiles have shrunk in 37 of the last 52 weeks and are down more than 108 million barrels since April last year. The gradual fall has helped the U.S. crude market shift from year-over-year storage surplus to a deficit. At 425.3 million barrels, current crude supplies are 20.6% below the year-ago period and are in the bottom half 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 3.7 million barrels to 34.9 million barrels.
The crude supply cover was down from 26.1 days in the previous week to 25.4 days. In the year-ago period, the supply cover was 33.5 days.
Gasoline: Gasoline supplies recorded their fifth weekly decrease in a row as production slipped. The 1.1 million barrels drawn – below the polled number of 1.9 million barrels fall in supply level – took gasoline stockpiles down to 238.5 million barrels. Following last week’s decline, the stock of the most widely used petroleum product remains just below the year-earlier level though it is in the top half of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) edged up 537,000 barrels last week, contrary to analysts’ expectations for 1.3 million barrels decrease in supply level. The small weekly rise could be attributed to higher production and weak demand. At 129.5 million barrels, current supplies are 15% below the year-ago level and are in the lower half of the average range for this time of the year.
Refinery Rates: Refinery utilization was up by 0.7% from the prior week to 93%.
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.
Concho Resources is an independent oil and gas exploration and production company with producing properties mainly in the Permian Basin of southeast New Mexico and west Texas. It has a 100% track of outperforming estimates over the last four quarters at an average rate of 48.89%.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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U.S. Government Reports Surprise Draw in Crude Stockpiles
The U.S. Energy Department's inventory release showed that crude stockpiles recorded a surprise weekly decline even as domestic oil production reached another all-time high. Following the data sets, front month West Texas Intermediate (WTI) crude futures moved down 0.2% (or 14 cents) to end at $63.37 per barrel yesterday.
Analysis of the EIA Data
Crude Oil: The federal government’s EIA report revealed that crude inventories fell by 4.6 million barrels for the week ending Mar 30, following an increase of 1.6 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 up some one million barrels.
Higher refinery runs and lower imports led to the surprise draw build with the world's biggest oil consumer even as domestic production reached a new record.
In particular, U.S. output rose by 27,000 barrels per day last week to nearly 10.5 million barrels per day – the most since the EIA started maintaining weekly data in 1983. In early February, oil production broke through the 10 million barrels a day threshold for the first time in nearly 50 years and has maintained the record levels thereafter.
Meanwhile, stockpiles have shrunk in 37 of the last 52 weeks and are down more than 108 million barrels since April last year. The gradual fall has helped the U.S. crude market shift from year-over-year storage surplus to a deficit. At 425.3 million barrels, current crude supplies are 20.6% below the year-ago period and are in the bottom half 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 3.7 million barrels to 34.9 million barrels.
The crude supply cover was down from 26.1 days in the previous week to 25.4 days. In the year-ago period, the supply cover was 33.5 days.
Gasoline: Gasoline supplies recorded their fifth weekly decrease in a row as production slipped. The 1.1 million barrels drawn – below the polled number of 1.9 million barrels fall in supply level – took gasoline stockpiles down to 238.5 million barrels. Following last week’s decline, the stock of the most widely used petroleum product remains just below the year-earlier level though it is in the top half of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) edged up 537,000 barrels last week, contrary to analysts’ expectations for 1.3 million barrels decrease in supply level. The small weekly rise could be attributed to higher production and weak demand. At 129.5 million barrels, current supplies are 15% below the year-ago level and are in the lower half of the average range for this time of the year.
Refinery Rates: Refinery utilization was up by 0.7% from the prior week to 93%.
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.
The data from EIA generally acts as a catalyst for crude prices and affect producers, such as ExxonMobil (XOM - Free Report) , Chevron (CVX - Free Report) and ConocoPhillips (COP - Free Report) , and refiners such as Valero Energy (VLO - Free Report) , Phillips 66 (PSX - Free Report) and Marathon Petroleum (MPC - Free Report) .
Want to Own an Energy Stock Now?
If you are looking for a near-term energy play, Concho Resources Inc. may be an excellent 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.
Concho Resources is an independent oil and gas exploration and production company with producing properties mainly in the Permian Basin of southeast New Mexico and west Texas. It has a 100% track of outperforming estimates over the last four quarters at an average rate of 48.89%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>