US gasoline inventories  

According to the EIA, US gasoline inventories rose by 6,780,000 barrels to 220.8 MMbbls (million barrels) on November 24–December 1, 2017. Inventories rose 3% week-over-week but fell by 8.6 MMbbls or 3.7% from a year ago.

Market surveys expected that US gasoline inventories would have risen by 1,741,000 barrels on November 24–December 1, 2017. A massive rise in gasoline inventories weighed on gasoline (UGA) and crude oil (SCO) (USL) prices on December 6, 2017. US gasoline futures fell 3.3% to $1.66 per gallon on the same day.

US Gasoline Inventories Add More Pain to Crude Oil Futures

US gasoline production and demand 

US gasoline production fell by 464,000 bpd (barrels per day) or 4.5% to 9.7 MMbpd (million barrels per day) on November 24–December 1, 2017, according to the EIA. The production also fell by 155,000 bpd or 1.5% from the same period in 2016.

US gasoline demand rose by 171,000 bpd or 2% to 8.8 MMbpd on November 24–December 1, 2017. Gasoline demand also rose by 138,000 bpd or 1.6% from the same period in 2016. The rise in gasoline demand is positive for gasoline and oil (UWT) prices.

Higher gasoline (UGA) prices have a positive impact on refining companies (CRAK) like Holly Frontier (HFC), Phillips 66 (PSX), and PBF Energy (PBF).

Similarly, higher oil (DWT) prices have a positive impact on oil producers (IYE) (FENY) like EOG Resources (EOG), Callon Petroleum (CPE), Parsley Energy (PE), and Matador Resources (MTDR). 


US gasoline inventories rose for the fourth straight week. They’re 2.3% above their five-year average for the week ending December 1, 2017. It’s bearish for gasoline and oil (USO) prices.

Next, we’ll discuss why US distillate inventories are bearish for oil prices.

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.