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.
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%.
You can see The full list of current Zacks # 1 Rank stocks here.
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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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