US distillate inventories
The EIA estimates that US distillate inventories fell by 799,000 barrels to 124.7 MMbbls (million barrels) on November 3–10, 2017. Inventories fell 0.6% week-over-week and by 23.8 MMbbls or 16.04% YoY (year-over-year).
The market expected that US distillate inventories would have fallen by 500,000 barrels on November 3–10, 2017. A better-than-expected draw in distillate inventories supported US diesel futures on November 15, 2017. Diesel futures rose 1.1% to $1.90 per gallon on the same day, while US crude oil (USL) (UCO) futures fell.
US crude oil (UWT) (USO) prices are at a ten-day low. Changes in oil prices impact energy producers (IEO) (FENY) like Northern Oil & Gas (NOG), Newfield Exploration (NFX), and Energen (EGN). Changes in diesel prices impact refiners (CRAK) like CVR Energy (CVI), Western Refining (WNR), and Alon USA Energy (ALJ).
US distillate production and demand
US distillate production rose by 32,000 bpd (barrels per day) to 5,231,000 bpd on November 3–10, 2017. Production rose 0.6% week-over-week and by 247,000 bpd or 5% YoY.
US distillate demand fell by 457,000 bpd to 4,029,000 bpd on November 3–10, 2017. Demand fell 10% week-over-week but rose by 85,000 bpd or 2.1% YoY.
US distillate inventories are near a three-year low. They have fallen ~35.5% or by ~46 MMbbls from their all-time high. Any fall in distillate inventories would be bullish for diesel and crude oil (DWT) (SCO) prices.
Read Oil Exports and the IEA’s Report Could Drag Crude Oil Futures and Are Hedge Funds Turning Bullish or Bearish on Natural Gas? for the latest updates on oil and gas.
Prykull assumed a “neutral” rating for Kroger (KR) and said that although the company has an "ok" online position, investors need to remain cautious.
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.