For Immediate Release
Chicago, IL – January 8, 2013 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include ExxonMobil Corp. (XOM), Chevron Corp. (CVX), ConocoPhillips (COP), Valero Energy Corp. (VLO) and Tesoro Corp. (TSO).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday’s Analyst Blog:
Massive Drop in Crude Supplies
The U.S. Energy Department's weekly inventory release showed that crude stockpiles fell sharply, as imports tumbled even though production climbed to its highest level in 19 years. The report further revealed that refined product inventories – gasoline and distillate – increased from their previous week levels on weakening demand.
The Energy Information Administration (EIA) Petroleum Status Report, containing data of the previous week ending Friday, outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.
The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect the businesses of the companies engaged in the oil and refining industry, such as ExxonMobil Corp. (XOM), Chevron Corp. (CVX), ConocoPhillips (COP), Valero Energy Corp. (VLO) and Tesoro Corp. (TSO).
Analysis of the Data
Crude Oil: The federal government’s EIA report revealed that crude inventories fell by 11.12 million barrels for the week ending December 28, 2012, following a drop of 586,000 barrels in the previous week.
The analysts surveyed by Platts had expected oil stocks to go down some 1 million barrels. A sharp drop in the level of imports led to the massive stockpile drawdown with the world's biggest oil consumer even as domestic production continued to spike, now at their highest level since 1993.
However, crude inventories at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – climbed 573,000 barrels from the previous week’s level to hit a new all-time high of 49.75 million barrels.
At 359.94 million barrels, current crude supplies are 9.2% above the year-earlier level, and comfortably exceed the upper limit of the average for this time of the year. The crude supply cover was down from 24.0 days in the previous week to 23.4 days. In the year-ago period, the supply cover was 22.5 days.
Gasoline: Supplies of gasoline were up for the sixth time in as many weeks, as domestic consumption fell. This was partially offset by lower imports and production.
The 2.57 million barrels gain – slightly ahead of the analysts’ projections for a 2.3 million barrels increase in supply level – took gasoline stockpiles up to 225.67 million barrels. As a result of this build, the existing inventory level of the most widely used petroleum product is 2.5% higher than the year-earlier level and is well above the upper half of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) jumped 4.57 million barrels last week, significantly higher than the analysts' expectations for a 1.6 million barrels build in inventory level. The rise in distillate fuel stocks – the fourth in 5 weeks – could be attributed to weaker demand, partially offset by lower production and imports.
At 123.97 million barrels, distillate supplies are 13.6% below the year-ago level and are under the lower limit of the average range for this time of the year.
Refinery Rates: Refinery utilization nudged up 0.1% from the prior week to 90.4%. The analysts were expecting the refinery run rate to go up by 0.45%.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: https://twitter.com/zacksresearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
More From Zacks.com