Devon Energy, Pioneer Natural Resources, Schlumberger, Halliburton and Chevron

For immediate release

Chicago, IL – May 21, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Devon Energy Corporation DVN, Pioneer Natural Resources Company PXD, Schlumberger Limited SLB, Halliburton Company HAL, and Chevron Corporation CVX.

Here are highlights from Thursday’s analyst blog:

Energy stocks follow the drop in oil on the build-up of crude stocks

U.S. oil prices slid Wednesday as rising inventories and the growing pandemic in India – the world’s third largest importer and consumer of crude – outpaced stronger demand for gasoline and distillate. On the New York Mercantile Exchange, WTI crude futures fell $ 2.13 or 3.3% to settle at $ 63.36 per barrel.

Below, we take a look at the EIA’s weekly State of Oil report for the week ending May 14.

Analysis of the latest EIA report

Crude oil: The federal government’s EIA report found that crude inventories rose 1.3 million barrels from expectations of a decline of 2.9 million barrels. A surge in imports was the main reason for the build-up of surprise stocks with the world’s largest oil consumer. This brings the total national stocks to 486 million barrels – 7.7% below last year’s figure and 1% below the five-year average.

On a somewhat positive note, the latest report showed supplies at the Cushing Terminal (the main delivery hub for U.S. crude futures traded on the New York Mercantile Exchange) were down 142,000 barrels to 45, 8 million barrels.

Meanwhile, crude supply coverage declined slightly, from 32.3 days the previous week to 32.2 days. A year ago, supply coverage was 41.3 days.

Now on to the products.

Gasoline: Gasoline supplies fell for the first time in seven weeks. The 2 million barrels draw is attributable to a substantial increase in demand which reached the highest level since March 2020. Analysts had forecast gasoline inventories to increase by 600,000 barrels. At 234.2 million barrels, the current stock of the most widely used petroleum product is 8.4% below the previous year’s level and 2% below the five-year average.

Distillate: Supplies of distilled fuel (including diesel and fuel oil) declined for the sixth consecutive week. The drop of 2.3 million barrels reflects additional demand. Meanwhile, the market was looking for a supply drop of 200,000 barrels. Current stocks – at 132.1 million barrels – are at their lowest since April 2020, 16.8% below a year ago level and 5% below the five-year average.

Refinery prices: Refinery utilization, at 85%, increased 1.3% from the previous week.

Wrap

Oil prices stabilized lower on Wednesday, following an unexpected increase in inventories after two weeks of decline. Demand for crude is also facing new challenges from another wave of lockdowns and restrictions in major parts of Asia such as India, Japan and Thailand. Of particular concern is the resurgence of COVID-19 in India, which has the potential to slow the recovery in oil consumption.

In addition to demand issues, there were reports of the progress of talks on nuclear deals between the United States and Iran (or the likelihood of more oil coming back to market), which were enough to push the SPDR’s Energy Select sector – an assortment of the largest US energy companies – down 2.5% Wednesday. As a result, some of the S&P 500’s biggest victims included energy-related names like Devon Energy, Pioneer natural resources, Schlumberger and Halliburton.

Meanwhile, the only energy representative in the 30-stock Dow Jones industrial average, Chevron, carrying a Zacks rank of # 3 (Hold) – was down 2.81%.

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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for any particular investor. It should not be assumed that investments in securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. Opinions or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research is not engaged in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios composed of stocks with a Zacks rank = 1 that have been rebalanced monthly with no transaction fees. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.

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Chevron Corporation (CVX): Free Inventory Analysis Report

Schlumberger Limited (SLB): Free Inventory Analysis Report

Halliburton Company (HAL): Free Stock Analysis Report

Pioneer Natural Resources Company (PXD): Free Inventory Analysis Report

Devon Energy Corporation (DVN): Free Stock Analysis Report

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