ProShares Ultra Oil & Gas

October WTI (or West Texas Intermediate) crude oil (USO) (UCO) futures contracts rose 0.4% and were trading at $47.73 per barrel in electronic trade at 2:00 AM EST on August 22, 2017.

The EIA estimated that four-week average US gasoline demand rose by 134,000 bpd (barrels per day) to 9,102,000 bpd from March 10–17, 2017.

Revenues from Weatherford International’s (WFT) Latin American region fell the most by 18.5% from 2Q16 to 2Q17.

April gasoline futures fell 2.4% to $1.65 per gallon on March 8, 2017. Prices fell despite the massive fall in US gasoline inventories.

A Reuters survey estimates that Libya’s crude oil production fell by ~20,000 bpd (barrels per day) to 670,000 bpd in February 2017—compared to January 2017.

On February 9, 2017, US crude oil futures contracts for March delivery closed at $53.00 per barrel—an ~1.3% rise compared to the previous trading session.

Libya produced ~1.8 MMbpd of crude in 2007. Civil war and militant attacks on its oil infrastructure caused the fall in Libya’s crude oil production.

Libya’s National Oil Corporation reported that the country’s crude oil production rose by 300,000 bpd between September 2016 and January 2017.

The short interest in Schlumberger (SLB), as a percentage of its float, is 1.5% as of August 7, 2017—compared to 1.6% as of June 30, 2017.

Short interest in Nabors Industries (NBR) as a percentage of its float was 11.4% as of June 19, 2017, compared to 10.1% as of March 31, 2017.

Let’s track some important events for oil and gas traders from August 14 to 18, 2017.

June diesel futures contracts rose 2.1% to $1.47 per gallon on May 10, 2017. Prices rose due to the larger-than-expected fall in distillate inventories.

The energy sector contributed to ~6.3% of the S&P 500 (SPY) (SPX-INDEX) on April 28, 2017. Oil and gas are major parts of the energy sector.

Russia’s Energy Ministry reported that its oil production fell in the first half of April 2017 due to major producers’ production cut deal.

The EIA (U.S. Energy Information Administration) estimated that four-week average US gasoline demand fell by 80,000 bpd to 9,237,000 bpd on April 14–21.

On November 16, Weatherford International (WFT), an oilfield equipment and services company, disclosed that it issued 84.5 million ordinary stocks.

A less-than-expected rise in gasoline inventories supported gasoline prices on May 3, 2017. Gasoline and crude oil (DIG) (SCO) (VDE) prices rose on May 3.

Schlumberger’s (SLB) Drilling segment witnessed the highest revenue fall of 20% in 1Q17—compared to 1Q16. Its Production segment fell ~8%.

Bullish crude oil prices benefit upstream companies like Matador Resources (MTDR), SM Energy (SM), Warren Resources (WRES), and Bonanza Creek Energy (BCEI).

Libya’s National Oil Corporation reported that the country’s crude oil production rose to ~700,000 bpd in January—the highest level in the last three years.

Short interest in Schlumberger (SLB) as a percentage of its float is 1.2% as of July 6, 2017, compared to 1.2% as of March 31, 2017.

Schlumberger’s (SLB) Drilling segment witnessed the highest revenue fall of 32% in 4Q16 compared to 3Q16.

Libya’s crude oil production   On December 20, 2016, Libya’s National Oil Corporation reported that pipelines leading from the Sharara and El Feel fields were reopened. The pipelines were closed for two years due to militant attacks. The pipelines are expected to add 270,000 bpd (barrels per day) of crude oil supply over the next three months. The […]

Schlumberger’s revenues from North America staged a noteworthy recovery, rising 27% from 2Q16 to 2Q17.

US crude oil output is at the highest level since January 25, 2016. The rise in crude oil output is the biggest bearish driver for crude oil prices in 2017.

The EIA (U.S. Energy Information Administration) estimated that four-week average US gasoline demand rose by 6,000 bpd to 9,317,000 bpd on April 7–14.

The EIA reported that US crude oil inventories fell by 6.4 MMbbls (million barrels) to 509.9 MMbbls on May 19–26, 2017.

The expectation of slowing production will support crude oil prices. Crude oil prices are up more than 90% from the lows in February 2016.

The EIA (U.S. Energy Information Administration) reported that US distillate inventories fell by 2.2 MMbbls (million barrels) to 150.2 MMbbls between March 31 and April 7, 2017.

In 2Q17, Schlumberger reported a net loss of ~$74 million—a sharp improvement compared to 2Q16 when it reported a net loss of $2.16 billion.

On April 18, 2017, the API released its weekly crude oil inventory report. It reported that US crude oil inventories fell by 0.84 MMbbls from April 7–14.

The EIA reported that monthly US crude oil production rose 196,000 bpd to 9.0 MMbpd in February 2017.

The US Energy Information Administration estimates that global crude oil supply outages fell by 247,000 bpd (barrels per day) to 2.0 MMbpd (million barrels per day) in June 2017.

The EIA (U.S. Energy Information Administration) reported that US crude oil production rose by 36,000 bpd (barrels per day) to 9,235,000 bpd between March 31 and April 7, 2017.

Rosneft is Russia’s largest oil producer. On June 1, a Rosneft board member stated that Russia wouldn’t extend the production cut deal beyond March 2018.

The EIA (U.S. Energy Information Administration) reported that US distillate inventories fell by 2 MMbbls to 148.3 MMbbls on April 7–14, 2017.

The EIA estimated that four-week average US gasoline demand rose by 210,000 bpd (barrels per day) to 9,312,000 bpd from March 17–24, 2017.

In 1H17, Weatherford’s revenues fell 8%—compared to 1H16. It managed to lower its net losses significantly during this period.

The energy sector contributed to ~6.6% of the S&P 500 on March 31, 2017. Oil and gas producers’ earnings depend on crude oil and natural gas prices.

OECD’s oil inventories are at the highest level ever. Record oil inventories are bearish for crude oil (PXI) (ERX) (DIG) (USL) (IXC) prices.

The EIA reported that monthly US crude oil production rose by 60,000 bpd (barrels per day) to 8.8 MMbpd in January 2017—compared to the previous month.

Schlumberger’s Drilling segment witnessed the highest revenue fall at 32% in 4Q16 compared to 4Q15. The segment was followed by the Reservoir Characterization and Production segments.

The EIA reported that US distillate inventories fell by 1.9 MMbbls (million barrels) to 146.8 MMbbls on May 5–12, 2017.

The API released its weekly inventory report on February 22, 2017. It estimated that US gasoline inventories fell by 0.9 MMbbls from February 10–17, 2017.

Hedge funds reduced their net long positions in US crude oil futures and options by 12,094 contracts to 157,891 contracts on September 5–12, 2017.

October WTI (West Texas Intermediate) crude oil (USO)(UCO)(DIG) futures contracts rose 0.16% and were trading at $49.98 per barrel in electronic trading at 2:10 AM EST on September 18.

On September 13, the EIA (U.S. Energy Information Administration) released its weekly crude oil inventory report.

West Texas Intermediate crude oil (DBO) (DIG) (XLE) futures contracts for October delivery rose 1.2% to $48.07 per barrel on September 11, 2017.

US distillate inventories  On August 30, 2017, the EIA (U.S. Energy Information Administration) released its weekly crude oil inventory report. The EIA estimates that US distillate inventories rose by 0.5% to 149.1 MMbbls (million barrels) between August 18 and 25, 2017. Inventories fell by 5.6 MMbbls, or 3.6%, from the same period in 2016. Inventories […]

US crude oil production  The EIA (U.S. Energy Information Administration) estimates that US crude oil production rose by 2,000 bpd (barrels per day) to 9,530,000 bpd between August 18 and 25, 2017. Production rose 1,042,000 bpd, or 12.3%, from the same period in 2016. It has risen for three consecutive weeks to August 25, and has reached […]

Let’s track some important events for oil and gas traders between August 28 and September 1, 2017.

The EIA reported that US crude oil inventories fell by 8.9 MMbbls or 1.8% to 466.4 MMbbls on August 4–11, 2017—the biggest draw since September 2016.

September WTI (West Texas Intermediate) crude oil (OIH) (SCO) (DIG) futures contracts rose 0.5% to $47.81 per barrel in electronic trading at 1:50 AM EST on August 16, 2017.

The API estimates that US gasoline inventories rose by 1.5 MMbbls (million barrels) on July 28–August 4, 2017.

Schlumberger’s (SLB) Production segment witnessed the highest revenue growth (17.6% rise) in 2Q17 over 2Q16.

In 1Q17, Weatherford International’s net loss was $443 million.

Schlumberger’s 1Q17 revenue by geography From 4Q16 to 1Q17, Schlumberger (SLB) witnessed 6% revenue growth in North America, while it saw a steep revenue decline of ~10% in the Europe/CIS[1.Commonwealth of Independent States]/West Africa region. Schlumberger’s revenue from Latin America was resilient in 1Q17, remaining unchanged from 4Q16. Schlumberger accounts for 6.5% of the ProShares […]

In the week ended June 23, 2017, natural gas inventories were at 2,816 Bcf (billion cubic feet)—46 Bcf more compared to the week earlier.

In the week ended June 16, 2017, natural gas inventories rose 61 Bcf (billion cubic feet) to 2,770 Bcf based on EIA data released on June 22, 2017.

On June 22, 2017, WTI crude oil (USO) (OIIL) active futures’ implied volatility was 29.7%, up 1.7% compared to its 15-day average.

The EIA reported that natural gas inventories rose by 78 Bcf (billion cubic feet) to 2,709 Bcf in the week ending June 9, 2017.

On June 15, 2017, US crude oil active futures’ implied volatility was 27.9%.

In the week ended June 2, 2017, natural gas inventories rose by 106 Bcf.

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.

Schlumberger’s (SLB) Latin America region witnessed the highest revenue decline (30% fall) in 1Q17—compared to 1Q16.

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.

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.

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.

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.

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.

Market surveys estimate that Cushing crude oil inventories rose between April 28 and May 5, 2017.

According to data from the EIA released on April 27, 2017, natural gas inventories rose 74 Bcf (billion cubic feet) during the week ended April 21, 2017.

Weatherford’s North America region’s 1Q17 operating loss improved to $18 million—compared its operating loss of $128 million last year.

According to data from the EIA released on April 20, 2017, natural gas (GASX) (FCG) (GASL) inventories rose by 54 Bcf during the week ending April 14, 2017.

The EIA estimates that OECD’s crude oil inventories fell by 7.69 MMbbls (million barrels) to 2,977 MMbbls in March 2017—compared to the previous month.

For the week ending April 14, 2017, the EIA reported that Cushing crude oil inventories fell by 0.8 MMbbls (million barrels) to 68.6 MMbbls.

Natural gas (GASX) (FCG) (GASL) inventories rose by ten Bcf (billion cubic feet) during the week ending April 7, 2017.

Revenues from Weatherford International’s (WFT) Europe/Sub Saharan Africa/Russia region fell the most with a 36.5% fall from 4Q15 to 4Q16.

According to data from the EIA (U.S. Energy Information Administration) released on March 30, 2017, natural gas inventories fell by 43 Bcf (billion cubic feet) during the week ending March 24, 2017.

According to data from the EIA released on March 23, 2017, natural gas (UNG) (FCG) (GASL) inventories fell by 150 Bcf during the week ending March 17, 2017.

According to data from the EIA released on March 16, 2017, natural gas inventories fell by 53 Bcf during the week ending March 10, 2017.

According to data from the EIA released on March 9, 2017, natural gas (UNG) (FCG) (DGAZ) inventories fell by 68 Bcf during the week ending March 3, 2017.

The US dollar and crude oil (ERY) (ERX) (DIG) (XES) are usually inversely related. A weaker US dollar makes crude oil more affordable for oil importers.

Geographically, revenues from Weatherford International’s (WFT) North America region fell the most (46%) from 3Q15 to 3Q16.

US crude oil (UWTI) (IXC) (ERY) (BNO) (RYE) inventories rose by 4.9 MMbbls (million barrels) to 474 MMbbls between September 30 and October 7.

In the last four trading sessions, natural gas October futures have fallen by 7.3%. On September 7, they closed ~1.5% lower than the previous session.

In the last five trading sessions, natural gas October futures have risen by 1.8%. They closed at ~$2.89 per MMBtu on August 31, 2016.

Natural gas prices broke above the 20-day moving average on August 23. This indicates short-term bullishness in natural gas prices.

Forward EV-to-EBITDA is a useful metric to gauge relative valuation. Halliburton’s (HAL) forward EV-to-EBITDA multiple expansion is the highest in our group.

From 2Q15 to 2Q16, all of Core Laboratories’ segments saw lower revenues. Its Reservoir Management segment suffered the highest revenue decline (59%).

Schlumberger’s Drilling segment witnessed the highest revenue decline in 2Q16 over 2Q15, closely followed by Reservoir Characterization and Production.

National Oilwell Varco (NOV) recorded a revenue decline of 55% in fiscal 1Q16 compared to the year-ago quarter. Its fiscal 1Q16 revenue was $2.2 billion compared to $4.8 billion a year earlier.

The API reported that US crude oil inventory fell by 1.1 MMbbls between April 15 and April 22. Cushing crude inventories rose 1.9 MMbbls in the same period.

FMC Technologies released its 1Q16 results on April 26, 2016. It recorded total revenue of ~$1.2 billion, a fall of ~29% from $1.7 billion in 1Q15.

On March 23, 2016, the EIA reported that US on-highway diesel fuel prices increased by 1% to $2.1 per gallon on March 21 compared with the previous week.

The EIA estimates that the Permian Basin’s crude oil production amounted to ~2.0 MMbpd (million barrels per day) in February 2016.