WTI Crude oil futures
WTI (West Texas Intermediate) crude oil (USL) (SCO) futures contracts for January delivery fell 0.5% to $57.69 per barrel in electronic exchange at 12:55 AM EST on November 29, 2017. Prices fell due to the API’s (American Petroleum Institute) bearish crude oil inventory report. The report was released yesterday. Lower oil prices have a negative impact on oil producers’ (RYE) (XLE) profitability like Denbury Resources (DNR), Chevron (CVX), Carrizo Oil & Gas (CRZO), and EOG Resources (EOG).
Meanwhile, December E-Mini S&P 500 (SPY) futures contracts fell 0.05% to 2,624.75 during the same period.
API’s crude oil inventory estimates
US crude oil inventories rose by 1,821,000 barrels on November 17–24, 2017, according to the API. A Bloomberg survey estimated that inventories would have fallen by 2,950,000 barrels during the same week.
An unexpected increase in US oil inventories pressured WTI oil (USO) (UCO) prices in post-settlement trade on November 28, 2017. US crude oil inventories are 14.3% above their five-year average, which was also bearish for oil (DBO) (UWT) prices.
API’s gasoline and distillate inventories
US gasoline inventories fell by 1,529,000 barrels on November 17–24, 2017, according to the API. However, distillate inventories rose by 2,696,000 barrels during the same week. Market surveys expect that US gasoline inventories could have risen by 1,170,000 barrels during the same period. The surveys also estimated that US distillate inventories could have risen by 230,000 barrels.
EIA’s US crude oil inventories
The EIA will release its weekly crude oil inventory report on November 29, 2017. If the EIA reports a surprise increase in US crude oil inventories, it could pressure oil (UWT) prices. Any rise in gasoline or distillate inventories could also pressure oil prices.
Next, we’ll cover US gasoline demand.
US crude oil exports rose by 462,000 bpd or 41% to 1,591,000 bpd on November 10–17, 2017, according to the EIA.
Most analysts reduced their target prices on FedEx after the delivery giant trimmed its fiscal 2019 earnings outlook.
US new vehicle sales stood at 1.26 million units in February 2019, down about 2.8% from 1.30 million units in February 2018.
On March 15–22, US crude oil May futures rose 0.4% and closed at $59.04 per barrel.
Micron has given a weaker-than-expected revenue forecast for the third quarter but expects memory chip demand to recover in the fourth quarter.
Signet Jewelers (SIG) is expected to report weak fourth-quarter results on April 3.
The EIA is scheduled to release its oil and natural gas inventory data on March 27–28, which could be a short-term driver for oil and natural gas prices.