The fall in bearish sentiment could be due to Tesoro’s (TSO) 1Q17 earnings, rising index values, and completion of the Western Refining acquisition.
In 2Q17, Tesoro (TSO) paid a dividend of $0.55 per share, which represents 29% growth from 2Q15.
Institutional ownership in Tesoro (TSO) currently stands at ~69% of outstanding shares.
In 1Q17, TSO stock fell due to its 4Q16 earnings, which missed estimates, as well as high gasoline and distillate inventories in the industry.
Implied volatility in Tesoro fell from 28.1% on April 3, 2017, to 23.9% on June 21.
Of the 21 analysts covering Tesoro (TSO), 17 rated it as a “buy” in June 2017. Another four analysts rated TSO as a “hold.”
In 2Q17, Tesoro (TSO) completed the acquisition of Western Refining, which could lead to higher capacity and operational synergies. Since April 3, 2017, Tesoro (TSO) stock has risen 13%.
If nuclear power plants shut down, that power generation share is expected to be eaten up by coal or natural gas.
Exelon (EXC), the largest nuclear power generator in the US, has warned it could close its Three Mile Island nuclear plant in Pennsylvania if it doesn’t receive state aid.
The EIA estimates that monthly US dry natural gas production rose by 6.8 Bcf per day or 19% to 73.9 Bcf per day in March 2017—compared to February 2017.
US natural gas inventories rose by 61 Bcf (billion cubic feet) to 2,770 Bcf on June 9–16, 2017. Inventories fell 10.5% from the same period in 2016.
Weather forecasting agencies predict that temperatures will be milder than normal next week in the Great Lakes and eastern parts of the US.
NYMEX natural gas (UNG) (FCG) futures contracts for July delivery were flat at $2.89 per MMBtu on June 22, 2017. Prices are at a three-month low.
August WTI (West Texas Intermediate) crude oil (XOP) (VDE) (RYE) futures contracts rose 0.5% and closed at $42.74 per barrel on June 22, 2017.
On June 22, 2017, natural gas (BOIL) (FCG) (GASX) active futures’ implied volatility was 35.4%, up 0.7% compared to its 15-day average.
Major energy ETFs tracked the 4.3% fall in US crude oil active futures between June 15 and June 22, 2017.
On June 22, 2017, WTI crude oil (USO) (OIIL) active futures’ implied volatility was 29.7%, up 1.7% compared to its 15-day average.
Between June 15 and June 22, 2017, global equity indexes had positive correlations with US crude oil (USO) (OIIL) active futures.
US crude oil (USO) (DBO) (USL) August futures fell 4.3% between June 15 and June 22, 2017, and settled at $42.74 per barrel.
Gold is stronger amid the pullback in the dollar and dented global sentiment. The weaker dollar supports dollar-denominated commodities like gold.