US distillate inventories 

The EIA (U.S. Energy Information Administration) released its weekly crude oil and gasoline inventory report on July 6, 2017. It reported that US distillate inventories fell by 1.8 MMbbls (million barrels) or 1.2% to 150.4 MMbbls on June 23–30, 2017. Inventories fell for the second straight week. However, distillate inventories rose 1% from the same period in 2016.

Diesel futures fell despite the surprise fall in US distillate inventories. US diesel futures fell 0.7% to $1.48 per gallon on July 6, 2017. Crude oil (ERY) (ERX) (IXC) futures rose on July 6, 2017. US crude oil and diesel futures usually move together, as you can see in the following chart.

US Distillate Inventories Fell for the Second Straight Week

Moves in crude oil prices impact US crude oil producers’ earnings like Comstock Resources (CRK), Western Refining (WNR), Marathon Petroleum (MPC), and Northern Oil & Gas (NOG).

API’s distillate inventories

On July 5, 2017, the API (American Petroleum Institute) released its weekly crude oil inventory report. It estimated that distillate inventories rose by 0.37 MMbbls on June 23–30, 2017.

US distillate production and demand

The EIA estimates that US distillate production fell by 144,000 bpd (barrels per day) or 2.7% to 5,100,000 bpd on June 23–30, 2017. Distillate demand rose by 293,000 bpd or 7.2% to 4,322,000 bpd during the same period.


US distillates inventories are above the five-year range. High distillate inventories would pressure diesel prices, which in turn weighs on crude oil prices.

For more on the crude oil’s price forecast, read Hedge Funds’ Net Bullish Positions on US Crude Oil.

Read Will OPEC and Russia Pressure US and Brent Crude Oil Futures? and Why Brent and US Crude Oil Futures Could Make a U-Turn to learn about crude oil.

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.

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.