iShares Global Energy
The WTI-Brent crude oil discount narrows
The divergence between WTI and Brent narrowed last week, as a slowdown in Cushing offered a glimmer of hope, causing WTI to rise.
EIA Natural Gas Inventory Report – Important for Energy Investors
Analysts expected a natural gas inventory draw of 51 billion cubic feet (or Bcf) last week.
How Chevron’s 3Q16 Segmental Earnings Trended
Chevron’s (CVX) earnings improved in 3Q16 compared to 3Q15. In fact, the upstream segment turned profitable in 3Q16.
Cushing Inventories Hit December 2014 Low
Analysts estimate that Cushing inventories could have declined on March 2–9. The EIA is scheduled to release its crude oil inventories report on March 14.
Things you need to do today before inflation takes off
So what should investors be doing today? While inflation may take another year or more to get going, it’s not too early to start implementing long-term inflation hedges.
Hess’s Management Objectives, Strategies in Focus
Hess sees growth opportunities in the Bakken and Utica plays. It also has several growth projects offshore, including its North Malay Basin and its Stampede projects.
How Chevron’s 1Q17 Segmental Earnings Trended
Chevron’s (CVX) Upstream segment, which posted a loss in 1Q16, saw its earnings rise to ~$1.5 billion in 1Q17.
Bunge Limited Rose on Positive News of Avoiding Labor Strikes
Bunge Limited (BG) has a market cap of $7.3 billion. BG rose by 5.2% to close at $51.33 per share as of February 22, 2016.
Phillips 66’s Cash Flow: Rising Shareholder Returns and Capex
From 3Q14 to 3Q15, PSX maintained average quarterly cash flow from operations at $1.1 billion. The company has continued its focus on preserving growth.
Why Halliburton’s Free Cash Flow Is Remarkable
Halliburton’s 3Q16 FCF improved significantly over the previous year. Its CFO rose significantly due to increased rig utilization in North America.
Libya’s Crude Oil Production: Bullish or Bearish for Oil Prices?
A Reuters survey estimates that Libya’s crude oil production rose by 50,000 bpd to 930,000 bpd in September 2017—compared to the previous month.
Bearish Momentum in Crude Oil Prices Pressures Gasoline Futures
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.
Analyzing Crude Oil Prices in 2016 and 2017
Crude oil prices were $54.1 per barrel on December 28—the highest since July 14, 2015. As of January 16, 2017, crude oil prices are 3.4% below their highs.
What Will Happen if the Oil Producer Meeting Succeeds?
October WTI (West Texas Intermediate) crude oil futures contracts were up by 1% to $45.31 per barrel in electronic trade at 5:15 AM EST on September 7, 2016.
Cushing Inventories Have Fallen 10% in the Last 10 Weeks
Cushing crude oil inventories have fallen 10% in the last ten weeks. A better-than-expected fall in Cushing inventories could support US crude oil prices.
How Did Brexit Impact Crude Oil Prices?
The referendum on June 23 caused the dollar to rise. Needless to say, a stronger dollar put pressure on crude oil prices.
Crude Oil Market: Hedge Funds Are Bullish
The Chinese market rose by 3% on Thursday, October 9. China’s steps to improve its slowing economy sent positive vibes in the global crude oil market.
Will EIA and API Crude Oil Inventories Impact Crude Oil Prices?
On November 15, the API released its weekly crude oil inventory report. US crude oil inventories rose by 3.6 MMbbls from November 4–11, 2016.
Analyzing the US, Canada, and Brazil’s Crude Oil Production
The US is the world’s third-largest crude oil producer. US crude oil production rose by 15,000 bpd to 9,320,000 bpd on May 12–19, 2017.
Refining Stocks and Oil Prices: Understanding the Correlation Coefficient
The correlation coefficient of Phillips 66 (PSX) and WTI stands highest among refiners at 0.42.
India’s Crude Oil Imports Surged in January
India’s crude oil imports increased 12.5% to a record high of 4.93 MMbpd in January 2018—compared to the previous month.
Cushing Crude Oil Inventories: Biggest Weekly Fall since January
Cushing crude oil inventories have fallen for the ninth time in ten consecutive weeks. Any fall in Cushing inventories is bullish for crude oil prices.
Crude Oil: Price Forecasts and Hedge Funds’ Position
Hedge funds increased their net long positions in US crude oil futures and options by 43,861 contracts or 18.4% to 282,362 contracts on July 25–August 1.
Kurdistan Referendum: Time to Buy Crude Oil Futures?
On September 25, 2017, the people in Kurdistan voted in a referendum for independence. As a result, Turkey blocked 500,000 bpd of crude oil exports.
Saudi Arabia’s Crude Oil Production Rose: Will Prices Fall More?
Saudi Arabia reported that its crude oil production rose by 263,300 bpd (barrels per day) to 10.01 MMbpd (million barrels per day) in February 2017.
Relationship between US Distillate Inventories and Oil Prices
US distillate inventories rose by 2,747,000 barrels to 127.7 MMbbls (million barrels) on November 17–24, 2017. Inventories rose 2.2% week-over-week.
OPEC Upgrades Non-OPEC and US Crude Oil Production
US crude oil production increased by 332,000 bpd (barrels per day) to a record high of 10,251,000 bpd on January 26–February 2, 2018.
Bears Celebrate: US Crude Oil Production Hit 2015 High
US crude oil production rose 0.3% week-over-week and 5.3% year-over-year. US crude oil production is near the highest level since August 21, 2015.
Is the US Crude Oil Bull Market Sustainable?
Brent crude oil futures closed at $57.54 per barrel on September 29, 2017. Some OPEC officials think that $60 per barrel for crude oil isn’t sustainable.
Gasoline Inventories and Consumption Impact Crude Oil Prices
The EIA reported that US gasoline inventories rose by 2.8 MMbbls to 259.1 MMbbls from February 3–10. US gasoline inventories are at the highest levels ever.
Will Crude Oil Prices Break below the 100-Day Moving Average?
So far, crude oil prices and broader markets such as the S&P 500 (SPY) (SPX-INDEX) are diverging in 2017. SPY has risen 4% YTD (year-to-date).
US and Brent Crude Oil Price Forecast for the Next 6 Months
Brent crude oil futures are trading below their 20-day, 50-day, 100-day, and 200-day moving averages of $49.9, $51.6, $53.3, and $53.8 per barrel.
Russia’s Crude Oil Production Hits Record: What’s Next?
Russia’s crude oil production rose by 2,000 bpd (barrels per day) to 11.23 MMbpd (million barrels per day) in November 2016 compared to the previous month.
Crude Oil Futures Are near a 2-Month High
WTI (West Texas Intermediate) crude oil futures contracts for September delivery rose 1.8% to $48.75 per barrel on July 26, 2017.
US Crude Oil Prices Are Almost Flat as the US Dollar Depreciates
WTI crude oil futures contracts for December delivery rose by 0.26% October 29. Crude oil prices rose due to technical buying activity and the depreciating US dollar.
Natural Gas Consumption Decreased in the Week Ending May 1
The EIA’s STEO was released on April 7. It forecasts that total natural gas consumption will average 76.3 Bcf/d in 2015 and 75.8 Bcf/d in 2016.
How OPEC and Non-OPEC Producers Affect Crude Oil Prices
Crude oil (BNO) (PXI) (USL) (USO) (UCO) prices were up ~4% between December 7, 2016, and December 19, 2016.
Gasoline Prices Continue their Uptrend the Week of May 8
For the summer of 2015, the EIA expects consumption to average 9.2 MMbpd, which is 0.14 MMbpd higher than last summer’s consumption.
Natural Gas Consumption Fell in the Week to April 17
Last week, total US natural gas consumption decreased by 1.7% week-over-week. Consumption declined in the residential and commercial sectors by 5.2%.
US Crude Inventories and OPEC Push Crude Oil to 5-Month High
November WTI (West Texas Intermediate) crude oil futures contracts rose 2.3% and settled at $49.83 per barrel on October 5, 2016.
OPEC’s Crude Oil Production Could Rebalance the Oil Market
A Reuters survey estimates that OPEC showed 95% compliance with targeted production cuts in March 2017 due to major producers’ production cut deal.
Global Crude Oil Supply Outages Could Push Oil Prices Higher
According to the EIA, global crude oil supply outages increased by 208,000 bpd or 14% to 1,738,000 bpd in December 2017—compared to November 2017.
April Cushing Inventories Move in on Capacity
If inventories at Cushing reach capacity, oil prices could tumble further. That would hurt oil producing companies such as Hess (HES), ExxonMobil (XOM), Chevron (CVX), and Apache (APA).
Traders Track US Crude Oil Production and Exports
US crude oil production rose by 290,000 bpd (barrels per day) or 3.1% to 9,481,000 bpd in September 2017—compared to the previous month.
Is Iraq’s Crude Oil Production Bullish or Bearish for Oil Traders?
The EIA estimates that Iraq’s crude oil production fell by 35,000 bpd (barrels per day) to 4,320,000 bpd in November 2017 compared to the previous month.
Russia’s Crude Oil Production Fell in April: What’s Next?
Russia is the largest crude oil producer in the world. Russia’s production fell by 50,000 bpd to 11 MMbpd (million barrels per day) in April 2017.
Will Saudi Arabia’s Crude Oil Export Plans Rescue Oil Prices?
Saudi Arabia is the largest crude oil producer and exporter among the OPEC (Organization of the Petroleum Exporting Countries) member countries.
Will Saudi Arabia Extend the Output Cut Deal?
A Reuters survey estimates that Saudi Arabia’s crude oil production fell by 40,000 bpd to 9.98 MMbpd in August 2017—compared to the previous month.
Diesel Prices Rose Again on May 11
The EIA expects US distillate consumption this summer to average 4 million barrels per day, up 3% compared with last summer.
US Distillate Inventories Fall from a 6-Year Seasonal High
The EIA (U.S. Energy Information Administration) reported that US distillate inventories fell by 3.7 MMbbls (million barrels) to 157 MMbbls between September 30 and October 7.
Will Crude Oil Prices Hit a New High?
US WTI crude oil prices were at $54.45 per barrel on February 23—the highest level since June 2015. As of April 10, prices were 2.5% below their high.
How Does Halliburton’s Valuation Compare to Peers?
Halliburton’s (HAL) EV (approximately the summation of its equity value and net debt) when scaled by trailing-12-month (or TTM) adjusted EBITDA is lower than the peers’ average in the group.
Is OPEC’s Compliance to the Production Cut Deal Declining?
A Reuters survey showed that OPEC’s crude oil production declined by 70,000 bpd to 32 MMbpd in May—compared to the previous month.
Donald Trump’s Victory Pressures US Crude Oil Prices
December WTI (West Texas Intermediate) crude oil futures contracts fell 1.4% to $44.3 per barrel in electronic trade at 2:40 AM EST on November 9, 2016.
What Could Drive Crude Oil Prices Higher?
US crude oil inventories fell 15% from their peak in March 2017 for the week ending November 3, 2017, which helped oil (USO) (UCO) prices.
Natural Gas Consumption Trends in the Week of April 10
The U.S. Energy Information Administration’s “Short-Term Energy Outlook” forecasts that total natural gas consumption will average 76.3 Bcf per day in 2015 and 75.8 Bcf per day in 2016.
Why US Crude Oil Prices Hit Highest Level since July 2015
April WTI (West Texas Intermediate) crude oil (BNO) (IXC) (IYE) futures contracts rose 1.6% and settled at $54.45 per barrel on February 23, 2017.
Analyzing Saudi Arabia’s Crude Oil Export Strategy
On July 24, 2017, Saudi Arabia’s energy minister stated that the country would cut crude oil exports to 6.6 MMbpd in August 2017.
What a Wider Crack Spread in Mid-May Means for American Refiners
A crack spread represents the price difference between refiners’ revenues—achieved through the sale of finished refined products—and refiner costs—that is, the price of crude oil.
US Crude Oil Prices Are Trading Near a 2016 High!
November WTI (West Texas Intermediate) crude oil futures contracts rose 0.5% and settled at $50.44 per barrel on October 13.
Energy Sector Headwinds: Supply Side Poses a Challenge
The supply side is adding to energy sector headwinds (IXC).
China’s Teapot Refineries Impact the Crude Oil Market
The demand from China’s teapot refineries is expected to fall between June 2017 and August 2017 due to strict import quotas and tax policies.
What US Crude Oil Production’s 26-Month High Could Mean
On September 27, 2017, the EIA estimated that US crude oil production rose 37,000 bpd (barrels per day) to ~9.5 MMbpd from September 15–22, 2017.
How US Crude Oil Production Affects Crude Oil Prices
The EIA (U.S. Energy Information Administration) reported that US crude oil production rose 14,000 bpd (barrels per day) to 8,464,000 bpd between October 7 and October 14, 2016.
OPEC’s Falling Production Might Impact US Crude Oil Production
Major producers’ production cut deal led to a fall in OPEC’s crude oil production by 30,000 bpd to 32.19 MMbpd in February 2017—compared to January 2017.
Cushing Crude Oil Stocks and Nationwide Inventory Diverge
On October 29, 2015, Genscape reported that the crude oil inventory at Cushing, Oklahoma, continued to fall. The inventory fell for the second straight week.
WTI and Brent Converge: Is It Good for American Energy Companies?
WTI and Brent narrowed last week compared to the week before. The differential as of Friday, May 22, was $5.65 per bbl compared to $7.12 per bbl on Friday, May 15.
EIA’s 2015 Natural Gas Consumption Forecasts
The EIA forecasts that total natural gas consumption will average 75.7 Bcf/d in 2015 and 76.2 Bcf/d in 2016, compared to an estimated 73.5 Bcf/d in 2014.
Analysts’ Recommendations for BP before 1Q16 Earnings
The highest 12-month target price for BP ahead of 1Q16 earnings is $43, indicating a 40% gain from current levels.
Why the WTI-Brent Crude Oil Discount Converged Slightly
The divergence between WTI and Brent crude oil prices slightly narrowed. Brent prices saw a more pronounced effect from the Fed’s announcement.
Why Is Gasoline a Key Element in the US Energy Market?
Gasoline demand has grown by 2.1% to 19.8 MMbpd (million barrels per days) from August 2014 to August 2015.
Southwestern is among the largest US oil and natural gas producers
Headquartered in Houston, Texas, Southwestern Energy Corporation (SWN) is one of the largest independent natural gas and oil producers in the United States.
US Dollar Hit a 3-Year Low: Good News for Crude Oil?
The US Dollar Index (UUP) fell 0.64% to 90.39 on January 16, 2018—the lowest level since December 2014.
India’s Crude Oil Imports Hit a Record in 2017
India is the world’s third-largest crude oil consumer. Its oil imports hit a record in 2017. India’s crude oil imports rose 1.8% to 4.3 MMbpd in 2017.
US Crude Oil Inventory Data: What to Expect
In the week ending April 20, US crude oil inventories rose by ~2.17 MMbbls (million barrels) to ~429.7 MMbbls.
Higher Inventories Might Help Oil Prices Rise
In the week ending March 30, 2018, US crude oil inventories fell by 4.6 MMbbls (million barrels) to ~425.3 MMbbls.
Russia’s Crude Oil Production Is near April 2017 Highs
Russia’s crude oil production rose 0.2% to 10.97 MMbpd (million barrels per day) in March 2018—compared to the previous month.
US Dry Natural Gas Production Increased on March 8–14
According to PointLogic, US dry natural gas production increased 0.1% to 78.4 Bcf (billion cubic feet) per day on March 8–14, 2018.
Why Did US Dry Natural Gas Production Decline?
US dry natural gas production decreased 0.5% to 78.1 Bcf (billion cubic feet) per day on March 1–7, 2018, according to PointLogic.
US Natural Gas Inventories Declined
US natural gas inventories fell by 57 Bcf (billion cubic feet) to 1,625 Bcf on February 23–March 2, 2018, according to the EIA.
US Natural Gas Production Hits Record High
Monthly US natural gas production On February 28, 2018, the EIA (U.S. Energy Information Administration) released its monthly natural gas production data. It reported that US dry natural gas production rose 4.5% to a record high of 80.9 Bcf per day between November and December 2017. Production rose 7.3 Bcf (10%) per day year-over-year. US natural gas prices have fallen ~30% […]
Drop in US Crude Oil Inventories Boosts Oil Prices
The EIA reported that US crude oil inventories decreased by 1.6 MMbbls (million barrels) to 420.5 MMbbls on February 9–16, 2018.
US Natural Gas Inventories: Largest Weekly Withdrawal since 2014
US natural gas inventories declined by 194 Bcf (billion cubic feet) to 1,884 Bcf on February 2–9, 2018, according to the EIA.
US Crude Oil Inventories Are above Their 5-Year Average
The EIA reported that US crude oil inventories increased by 1.8 MMbbls (million barrels) or 0.4% to 422 MMbbls on February 2–9, 2018.
US Crude Oil Production Is near 1970 High
US crude oil production could hit a record high of 10,200,000 bpd in 2018, which would be the highest annual production average ever.
US Crude Oil Inventories Hit February 2015 Low
US crude oil inventories fell by 1.1 MMbbls (million barrels) to 411.6 MMbbls on January 12–19, 2018. Inventories decreased 0.3% week-over-week.
US Dollar Hit a 3-Year Low: Is It Bullish for Crude Oil?
The US Dollar Index (UUP) fell 0.34% to 90.09 on January 23—the lowest level since December 2014. The fall supported crude oil prices on January 23, 2018.
Restarting the Wintershall Oilfields in Libya Could Impact Oil Prices
On January 21, the NOC (National Oil Corporation) of Libya said that it would restart the Wintershall AG’s Sara oilfield. NOC is a state-owned oil company.
Iraq’s Crude Oil Production Capacity Could Hit 5 MMbpd
The EIA estimated that Iraq’s crude oil production increased by 60,000 bpd to 4,380,000 bpd in December 2017—compared to the previous month.
US Dollar Recovering from 3-Month Low: Bearish for Crude Oil?
The US Dollar Index fell ~9.8% in 2017. The dollar fell partly due to the improving economy outside the US. It was the worst annual drop since 2003.
US Natural Gas Production Could Pressure Prices in 2018
According to PointLogic, US dry natural gas production fell 3.7% to 74 Bcf (billion cubic feet) per day between December 28, 2017, and January 3, 2018.
Civil Unrest in Iran Could Impact Crude Oil Prices
On January 3, public protests continued for the sixth consecutive day in Iran. The protests against the government are due to weak economic conditions.
US Natural Gas Production Hit a Record in October
US dry natural gas production rose 0.7% to 76.8 Bcf (billion cubic feet) per day on December 14–20, 2017, according to PointLogic.
Weekly US Crude Oil Production Fell for the 1st Time since October
US crude oil production declined by 35,000 bpd (barrels per day) or 0.4% to 9,754,000 bpd from December 15 to 22, 2017, per the EIA.
How Long Will Libya’s Crude Oil Supply Outage Affect Oil Futures?
On Tuesday, December 26, 2017, militants blew up the oil pipeline that transports crude oil to the port of Es Sider in Libya.
US Natural Gas Inventories Fell Last Week
US natural gas inventories fell by 182 Bcf (billion cubic feet) to 3,444 Bcf on December 8–15, 2017, according to the EIA.
US Gasoline Inventories: Bearish Driver for Crude Oil Futures
The EIA estimated that US gasoline inventories rose by 1.2 MMbbls (million barrels) to 227.7 MMbbls on December 8–15, 2017.
Iran’s Crude Oil Production Is near a 9-Year High
The EIA estimates that Iran’s crude oil production fell by 10,000 bpd or 0.3% to 3,840,000 bpd in November 2017—compared to the previous month.
EIA Upgrades US Natural Gas Production for 2018
US dry natural gas production was flat at 76.1 Bcf (billion cubic feet) per day on December 7–13, 2017, according to PointLogic.
US Gasoline Inventories: Turning Point for Crude Oil Futures?
US gasoline inventories rose by 5.6 MMbbls (million barrels) or 2.6% to 226.5 MMbbls on December 1–8, 2017.