| Why Crude Oil Inventory Builds Were Less Than Expected | |
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Crude Oil, Gasoline Inventories Rise, Distillate Inventories Fall Crude oil stocks
The EIA (U.S. Energy Information Administration) in its Weekly Petroleum Status Report released on November 18, 2015, reported that crude oil inventories rose by 0.3 MMbbls (million barrels) for the week ended November 13, 2015.
What does this indicate?
When crude oil inventories rise less than analyst expectations, crude oil prices increase, which results in increased revenues for oil producers. This is positive for major oil producers such as Oasis Petroleum (OAS), Hess (HES), Anadarko Petroleum (APC), Apache (APA), ConocoPhillips (COP), and EP Energy (EPE).
ConocoPhillips (COP) accounts for 11.6% of the US Oil & Gas Exploration & Production ETF (IEO). Oasis Petroleum (OAS) accounts for 1.9% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
Higher prices may encourage these oil producing and exploration companies to produce more crude oil. This would result in higher transport volumes and revenues for MLPs such as Plains All American Pipeline (PAA).
WTI prices
Analysts were expecting crude oil inventories to rise by 2.0 MMbbls. But inventories rose less than seven times analyst expectations. A drop in imports and an increase in refinery demand led to the fall in inventory. So inventory builds were less than anticipated for the week ended November 13, 2015. Production and imports of crude oil stood at 9.2 MMbpd (million barrels per day) and 7.1 MMbpd for the week ended November 13.
Due to less-than-expected inventory builds, WTI (West Texas Intermediate) prices turned positive and rose $0.10 to $40.77 per barrel on November 18. Increased production and decreased imports could boost domestic oil producers and strengthen domestic crude oil prices.
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ConocoPhillips
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CODE : COP |
ISIN : US20825C1045 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
ConocoPhillips is a producing company based in United states of america. ConocoPhillips is listed in Germany and in United States of America. Its market capitalisation is US$ 152.8 billions as of today (€ 143.4 billions). Its stock quote reached its lowest recent point on December 31, 1991 at US$ 10.94, and its highest recent level on April 23, 2024 at US$ 129.84. ConocoPhillips has 1 177 107 000 shares outstanding. |