The EIA (U.S. Energy Information Administration) reported that oil stocks at Cushing, Oklahoma, rose by 123,000 bpd (barrels per day) to 56,368 barrels for the week ending June 26, 2015. In contrast, oil stocks fell by 1.87 MMbbls (million barrels) for the week ending June 19. In 2014, weekly Cushing crude oil stocks were at 20,476 barrels for the week ending June 27. Cushing is the futures delivery point for NYMEX-traded crude oil. Oil stocks rose for the second time in the last ten weeks.
The rising oil stocks imply that supply is rising or demand is falling. This will negatively impact crude oil prices. This will impact upstream companies like Apache (APA), Hess (HES), and Noble Energy (NBL). They account for 3.66% of the Energy Select Sector SPDR ETF (XLE). These stocks have a crude oil production mix that’s greater than 59% of their total production. Volatility in the oil market also affects ETFs like XLE and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).
US commercial crude oil stocks rose by 2.4 MMbbls to 465.4 MMbbls for the week ending June 26, 2015. This will also add pressure to oil prices. Despite this pessimistic sentiment, surging gasoline prices and slowing gasoline stocks gave a new dimension to crude oil’s price direction.
According to the latest EIA petroleum status report, gasoline and distillate output rose and averaged 10 MMbpd (million barrels per day) and 5 MMbpd for the week ending June 26, 2015. In spite of the rising production, gasoline inventories fell by 1.8 MMbbls over the same period. The summer holiday demand will drive gasoline prices. As a result, prices rose yesterday. This could boost oil prices for the July 4 holiday.
Higher oil prices will also benefit crude oil and natural gas drillers.
Bullish sentiment and strong summer holiday demand could push oil prices higher. The key resistance for crude oil prices is seen at $66 per barrel.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.