1 Jun

US Gasoline Demand Could Hit a Peak This Summer

WRITTEN BY Gordon Kristopher

API’s gasoline inventories  

The API (American Petroleum Institute) released its weekly crude oil inventory report on May 31, 2017. The API estimated that US gasoline inventories fell by 1.72 MMbbls (million barrels) on May 19–26, 2017. However, US gasoline prices fell 1.6% to $1.61 per gallon despite the fall in US gasoline on May 31, 2017. US distillate inventories rose by 0.1 MMbbls on May 19–26, 2017. Changes in gasoline and distillate inventories impact gasoline and crude oil (ERY) (ERX) (SCO) prices. For more on crude oil prices, read Part 1 of this series.

US Gasoline Demand Could Hit a Peak This Summer

US gasoline demand  

The EIA (U.S. Energy Information Administration) estimated that four-week average US gasoline demand rose by 124,000 bpd (barrels per day) to 9,430,000 bpd on May 12–19, 2017. US gasoline demand rose 1.3% for the week ending May 19, 2017—compared to the previous week. However, gasoline demand fell 1.7% compared to the same period in 2016.

The increase in gasoline demand is bullish for gasoline and crude oil (IXC) (IYE) (USL) prices. Higher gasoline and crude oil prices have a positive impact on refiners and oil producers’ earnings like Phillips 66 (PSX), Tesoro (TSO), Valero (VLO), PDC Energy (PDCE), and Cobalt International Energy (CIE). 

US gasoline consumption estimates for 2017 

The EIA estimates that US gasoline consumption will average 9,330,000 bpd 2017. US gasoline consumption averaged 9,330,000 bpd and 9,180,000 bpd in 2016 and 2015, respectively. Market surveys project a rise in US travelers to hit a record this summer. It would impact gasoline demand in 2017. High gasoline consumption in 2017 could have a positive impact on gasoline and crude oil prices.

In the last part of this series, we’ll take a look at Asia’s crude oil imports and demand in 2017.

Latest articles

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.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

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.

14 Jun

Why Kimberly-Clark Stock May Stop Rising


Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.