US crude oil inventories

According to the U.S. Energy Information Administration’s report on July 20, 2016, US crude oil inventories declined by 2.3 MMbbls (million barrels) for the week ended July 15, 2016. That compares to a decline of 2.6 MMbbls in the previous week. The Market expected a decline of 2.1 MMbbls. It beat Market expectations but declined for the ninth consecutive week.

Why US Crude Oil Inventories Fell for 9th Consecutive Week

The United States Oil ETF (USO) rose 0.28%, and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) rose 0.12% on July 20, 2016, as inventory reports meet Market expectations.

What does it indicate for crude oil prices?

The consecutive fall in crude oil inventories is a good sign for crude oil prices. In the past nine weeks, we saw that crude oil inventories fell. According to many traders, it’s a seasonal effect.

Traders were expecting a large draw on oil inventories in the summer driving season. Crude oil (UWTI) (BNO) prices now slowly started falling. But falling crude oil inventories aren’t allowing a huge fall in crude oil prices.

The stronger US dollar (UUP) could hamper the movements of crude oil, as commodity prices are dollar-denominated assets. If the Federal Reserve hikes interest rates in its next monetary policy meeting, it may harm the movements of crude oil.

In the next part of this series, we’ll analyze the Flash Services PMI (Purchasing Managers’ Index) for France.

Latest articles

This year, Pfizer (PFE) stock has fallen 0.34% and Bristol-Myers Squibb (BMY) stock has fallen 6.48%. Both companies are focused on strengthening their position in the high-growth oncology and immunology markets. Let's take a closer look at each.

Walt Disney’s (DIS) latest movie, Toy Story 4, has reportedly broken records in the opening weekend with $118 million in sales. However, the opening weekend collection was behind analysts’ expectations of at least $150 million in the first weekend.

24 Jun

Will Home Depot’s Upward Momentum to Continue?

WRITTEN BY Rajiv Nanjapla

As of June 21, Home Depot (HD) was trading at $209.39, which implies a rise of 9.7% since the announcement of its first-quarter earnings on May 21. Also, the company was trading at a premium of 32.4% from its 52-week low of $158.09 and a discount of 2.8% from its 52-week high of $215.43.

On June 21, Aurora Cannabis (ACB) made an announcement that indicated that it will move towards higher margin vape products. In addition, the company also believes concentrates and edibles will command higher margins. In anticipation of this development, the company announced the expansion of its facility to capitalize on growth related to these segments.

Shares of Mondelēz International (MDLZ) are scaling new heights thanks to its stellar gains so far this year. Mondelēz stock is up 38.0% on a YTD (year-to-date) basis, and it closed at $55.25—just a shade lower than its 52-week high of $55.71—on June 21.

24 Jun

How Long Will Facebook's Libra Fuel Bitcoin Rally?

WRITTEN BY Mayur Sontakke, CFA, FRM

Ever since the news about Facebook’s (FB) cryptocurrency project broke, Bitcoin has rallied on the hope that Facebook’s entry in the space will help make cryptocurrencies mainstream. Facebook’s cryptocurrency will be called Libra and will be governed by an association with 28 founding members across industries.

172.31.38.64