Inventory data

In the week ending November 3, 2017, US crude oil inventories rose by 2.2 MMbbls (million barrels) to 457.1 MMbbls. The market expected a fall of 2.5 MMbbls for the same week. After the EIA’s (U.S. Energy Information Administration) oil inventory report on November 8, 2017, US crude oil prices fell 0.7%.

Inventories Spread: Another Reason Why Oil Could Fall More

Inventories spread

The inventories are above their five-year average, which is crucial for oil (UCO) (BNO) (OIIL) prices. The difference between inventories and the five-year average is called as the “inventories spread.” If the inventories spread rises, it can pull oil lower.

In the week ending November 3, 2017, the inventories spread was at 16.5%. It was 1.8 percentage points above the level the previous week. After the EIA’s inventory report on November 8, 2017, US crude oil (USL) (DBO) prices have fallen 2% to date.

Market forecast

In the week ending November 10, 2017, US commercial crude oil stockpiles are expected to fall by 2.1 MMbbls. The EIA will release its oil inventory data on November 15, 2017. However, the American Petroleum Institute reported a buildup of 6.5 MMbbls on November 14. Any rise up to 8.6 MMbbls will keep the inventories spread steady.

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.