Cushing Crude Oil Inventories Fell Again
A recent survey estimated that inventories at Cushing could have fallen on June 2–9, 2017. Inventories at Cushing fell for the seventh time in ten weeks.
Miscellaneous
How Contract Manufacturers Got Involved in Qualcomm-Apple Dispute
The contract manufacturers don’t intend to withhold royalty payments, but they aren’t getting the cash from Apple.
US Gasoline Inventories: More Concerns for Crude Oil Prices
US gasoline inventories are 7.2% below their all-time high. The expectation of a fall in gasoline inventories could support gasoline prices.
Is Natural Gas Reacting to the US Dollar?
Between March 3, 2016–June 7, 2017, natural gas active futures rose 84.1% while the US dollar fell 0.8%.
Why RSI levels of Mining Shares Are Rising
On June 6, the implied volatilities of Alamos Gold, Primero Mining, Silver Wheaton, and Franco-Nevada were 51.1%, 90.6%, 30.8%, and 24.5%, respectively.
Chart in Focus: The Natural Gas Inventory Spread
Between January 27–June 7, 2017, natural gas active futures fell 10.9%. Natural gas inventories moved above their five-year average in the week ended January 27, 2017.
The Ups and Downs of the Dollar and Gold
On June 6, 2017, the US Dollar Index plunged to its lowest level in seven months, which helped dollar-denominated precious metals regain value.
A Look at Patterson-UTI Energy’s Higher 2017 Capex Plan
Patterson-UTI Energy’s capex budget for 2017 is $450.0 million. That’s 275.0% higher than its 2016 capex.
Is Crude Oil Ignoring the Falling Dollar?
Between May 30 and June 6, 2017, the US dollar (UUP) (USDU) (UDN) fell 0.7%, and crude oil (USO) (OIIL) July futures fell 3%.
US Gasoline Consumption Rose in May
The EIA estimates that US gasoline consumption averaged 9,600,000 bpd (barrels per day) in May 2017—0.16 MMbpd higher than the same period in 2016.
What’s the Correlation between the Dollar and Gold?
The rise in gold on June 6 also boosted the other three precious metals. Silver futures for August delivery were 1.4% higher for the day and closed at $17.6 per ounce.
What to Expect from Crude Oil Futures This Week
US crude oil (USO) (IXC) (IYE) (PXI) prices are near their one-month low. Lower crude oil prices have a negative impact on oil producers’ earnings.
Upstream Operators’ Capex Could Impact Schlumberger’s Margin
Schlumberger’s EBITDA margin was impacted negatively as upstream companies slashed their budgets. From 1Q16 to 1Q17, Schlumberger’s EBITDA margin fell.
Is the US Dollar a Factor in Natural Gas’s Current Downturn?
The US dollar (UUP) (UDN) (USDU) fell 0.3% between May 24 and May 31, 2017.
What Were Schlumberger’s Drivers in 1Q17?
Schlumberger’s (SLB) Latin America region witnessed the highest revenue decline (30% fall) in 1Q17—compared to 1Q16.
Why the Inventory Spread Could Make Natural Gas Bulls Happy
On a week-over-week basis, natural gas inventories rose by 75 Bcf (billion cubic feet) and were at 2,444 Bcf for the week ended May 19, 2017.
US Gasoline Demand Could Hit a Peak This Summer
The EIA 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.
Is the US Dollar Impacting Oil’s Downturn?
In the trailing week, the US dollar fell 0.1%. Despite a fall in the US dollar, crude oil July futures fell 3.5% between May 23 and May 30, 2017.
Why Microsoft Is Looking to Israel to Beef Up Its Cybersecurity Efforts
Investment in Israeli cybersecurity companies rose 23% from $560 million in 2015 to $689 million in 2016.
How Domino’s Pizza’s Valuation Multiple Compares to Its Peers
Domino’s better-than-expected SSSG and earnings in 1Q17 appear to have increased investor confidence, leading to rises in DPZ stock and its PE multiple.
How Did Crude Oil Movement by Rail Trend in February 2017?
The US Energy Information Administration estimates that US crude oil movement by rail fell by 3,546,000 barrels to 10,850,000 barrels in February 2017.
Why Microsoft Acquired Hexadite
In the week ended May 26, 2017, Microsoft (MSFT) announced the acquisition of Hexadite. Microsoft’s acquisition price for Hexadite is reported to be $100 million.
AVGO’s Bid for Toshiba’s Memory Business Surrounded by Hurdles
Broadcom (AVGO) is bidding for Toshiba’s (TOSBF) NAND (negative-AND) Flash business in order to expand in the network storage market.
Are RSI Numbers Moving Away from or Close to Critical Levels?
Investors are constantly speculating about the impact on precious metals of a possible Fed rate hike in June. Let’s look at some 14-day RSI scores and implied volatility.
Global Crude Oil Supply Outages Could Help Crude Oil Bulls
The EIA estimated that global crude oil supply outages rose by 181,000 bpd (barrels per day) to 2.52 MMbpd in April 2017—compared to March 2017.
PVH Stock Rises 5% following Its 1Q17 Results
PVH Corporation (PVH) reported a strong 1Q17 on May 24, 2017, beating analysts’ consensus estimate on both its top and bottom lines.
How Are the Correlations of Mining Stocks Moving?
Fears surrounding a potential upcoming interest rate hike took over precious metals recently, and they fell at the beginning of May 2017.
Natural Gas Inventory Spread Is Falling: Will Gas Prices Soar?
According to EIA data announced on May 18, there was an addition of 68 Bcf to natural gas (GASX) (FCG) (GASL) inventories for the week ending May 12, 2017.
Reading the Fund Flows of the iShares Silver Trust
Over the past year, silver has been very volatile compared to the other three precious metals. Silver was the highest among precious metals in mid-April 2017.
Analyzing McDonald’s Valuation Multiple
As of May 24, 2017, McDonald’s was trading at a PE multiple of 22.6x—compared to 21.3x before the announcement of its 1Q17 earnings.
Volatility for Precious Metal Miners: Movement Going Forward
The ETFS Physical Swiss Gold (SGOL) and the ETFS Physical Silver (SIVR) have risen 8.5% and 4.1%, respectively, on a year-to-date basis as of May 18, 2017.
Analyzing China’s Aluminum Production Data
China produced ~2.76 million metric tons of aluminum in April—a YoY increase of 7.6%. Its production has risen 12.0% YoY in the first four months of 2017.
CNI’s Intermodal Growth Continued in Week 19
Canadian National Railway moved more than 50,100 containers in the 19th week of 2017, compared to the nearly 40,900 containers it moved in the corresponding week of 2016.
Analyzing Libya and Nigeria’s Crude Oil Production
Libya’s crude oil production hit ~814,000 bpd in early May 2017. Bloomberg estimates that production is at the highest level since October 2014.
Gold and Other Precious Metals Fell on May 18
Gold futures for June expiration fell 0.47% and ended May 18 at $1,252.8 per ounce. The call implied volatility in gold rose to 11.3%.
What’s the Correlation between the Dollar and Gold in Last 5 Days?
One of the critical elements that plays on precious metals besides the overall market sentiment is the US dollar.
WTI Crude Oil and Gasoline Futures Diverge
US gasoline futures contracts for June delivery fell 0.1% to $1.60 per gallon on May 17, 2017. Prices fell due to a lower fall in US gasoline inventories.
Analyzing Silver’s Fundamentals
When analyzing the performance of a metal, investors should look at its fundamentals. In this series, we’ll look at various metrics for silver and other precious metals.
Cisco’s Top 10 Suppliers: The Impact of May’s Earnings
Amid the market sell-off from the latest Trump fiasco—this time his possible obstruction of justice—Cisco reports tonight after the markets close.
Kansas City Southern: Unfolding Its Intermodal Traffic in Week 18
In the week ended May 6, 2017, Kansas City Southern reported a year-over-year fall of 9.1% in its overall intermodal traffic.
What’s National Oilwell Varco’s 7-Day Stock Price Forecast?
NOV stock will likely close between $35.11 and $32.49 in the next seven days. The stock was trading at $33.80 on May 11, 2017.
What Analysts Think of Target Stock
The majority of analysts covering Target (TGT) are neutral on the stock. Analysts’ consensus rating on TGT was 2.9 on a scale of 1.0 (strong buy) to 5.0 (strong sell).
Canadian National Railway: Intermodal Growth Continues in Week 18
Canadian National Railway moved more than 48,400 containers in the 18th week of 2017, compared with nearly 42,300 containers in the corresponding week of 2016.
How the Dollar’s Revival Is Impacting Precious Metals in May
The US Dollar Index, which prices the dollar against a basket of six major world currencies, has risen ~0.46% on a trailing-five-day basis.
Is the Natural Gas Inventory Spread Optimistic?
According to data from the EIA on May 4, natural gas (GASX) (FCG) (GASL) inventories rose by 67 Bcf (billion cubic feet) during the week ending April 28.
How Analysts Rated Tesoro on Its 1Q17 Earnings Day
Tesoro (TSO) has been rated by 18 analysts. Of those, 12 have assigned the stock a “buy” or “strong buy” rating.
How Silver-Based Funds Plunged Their Way through April 2017
Precious metals were doing considerably well until the first half of April 2017. As investors’ risk appetites revived, haven assets slumped. Among these metals, silver has plummeted the most.
Is US Gasoline Demand Turning Bearish?
The EIA estimated that four-week average US gasoline demand fell by 22,000 bpd (barrels per day) to 9,215,000 bpd on April 21–28, 2017.
Could Crude Oil Prices Hit Lows from 2016?
WTI (West Texas Intermediate) crude oil (FXN) (SCO) (FENY) futures contracts for June delivery are near a five-month low as of May 9, 2017.
Kansas City Southern: A Look at Its Intermodal Traffic
Kansas City Southern’s intermodal traffic In the past few weeks, Kansas City Southern (Kansas City Southern), the smallest Class I railroad company in the United States, has seen its intermodal traffic slow. In the week ended April 29, 2017, Kansas City Southern reported a YoY (year-over-year) fall of 6.1% in its overall intermodal traffic. Kansas City […]