Chicago, IL – April 17, 2015 – 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 the Transocean Ltd. (RIG-Free Report), Exxon Mobil Corp. (XOM-Free Report), Royal Dutch plc (RDS.A-Free Report), Chevron Corp. (CVX-Free Report) and ConocoPhillips (COP-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:
Energy Stocks Cheer 2015’s Lowest Inventory Increase
The U.S. Energy Department's weekly inventory release showed that crude stockpiles recorded their smallest build this year. The report further revealed that within the ‘refined products’ category, gasoline stocks fell, while distillate supplies were up from the week-ago level.
Following the bullish data from the U.S. government, West Texas Intermediate (WTI) crude futures surged above $56 per barrel Wednesday, the highest in 2015. This also prompted investors to put their money back into oil and related support plays. As a result, market heavyweights like Transocean Ltd. (RIG-Free Report), Exxon Mobil Corp. (XOM-Free Report), Royal Dutch plc (RDS.A-Free Report), Chevron Corp. (CVX-Free Report) and ConocoPhillips (COP-Free Report) all gained handsomely in yesterday’s trading.
Analysis of the Data
Crude Oil: The federal government’s EIA report revealed that crude inventories increased by 1.29 million barrels for the week ending Apr 10, 2015, following a climb of 10.95 million barrels in the previous week.
The analysts surveyed by Platts – the energy information arm of McGraw-Hill Financial Inc. – had expected crude stocks to go up some 3.5 million barrels. While domestic production remains strong, it has moderated from its peak levels reached in March. This led to the modest stockpile build, the lowest in more than 3 months, with the world's biggest oil consumer.
But worryingly, crude inventories at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – were up 1.29 million barrels from the previous week’s level to 61.46 million barrels, a record.
Following the fourteenth successive weekly inventory rise, at 483.69 million barrels, current crude supplies are up 22.7% from the year-ago period and is at the highest level during this time of the year in 80 years at least. The crude supply cover was down from 30.8 days in the previous week to 30.5 days. In the year-ago period, the supply cover was 25.7 days.
Gasoline: Supplies of gasoline were down for the fifth time in 6 weeks, as demand strengthened. The 2.07 million barrels drop – considerably higher than the analysts’ projections for a 900,000 barrels decrease in supply level – took gasoline stockpiles down to 227.87 million barrels. Notwithstanding the latest decline, the existing inventory level of the most widely used petroleum product is still 8.4% higher than the year-earlier level and is well over the upper limit of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) were up 2.02 million barrels last week, contrary to analysts’ expectations for a 150,000 barrels fall in inventory level. The increase in distillate fuel stocks – the second time in 3 weeks – could be attributed to weakening demand. At 128.94 million barrels, distillate supplies are 15.2% above the year-ago level and are in the middle of the average range for this time of the year.
Refinery Rates: Refinery utilization was up 2.2% from the prior week to 92.3%.
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.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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TRANSOCEAN LTD (RIG): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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CONOCOPHILLIPS (COP): Free Stock Analysis Report
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