US gasoline inventories
US gasoline inventories rose by 3,627,000 barrels to 214 MMbbls (million barrels) on November 17–24, 2017, according to the EIA. However, gasoline inventories fell by 12 MMbbls or 5.3% YoY (year-over-year).
Wall Street analyst expected that US gasoline inventories would have risen by 1,199,000 barrels on November 17–24, 2017. A larger-than-expected rise in gasoline inventories pressured gasoline (UGA) and crude oil (USO) (SCO) prices on November 29, 2017. NYMEX gasoline futures fell 2.3% to $1.73 per gallon on the same day.
US gasoline production and demand
US gasoline production fell by 210,000 bpd (barrels per day) to 10.2 MMbpd (million barrels per day) on November 17–24, 2017, according to the EIA. Production fell 2% week-over-week but rose by 236,000 bpd or 2.3% YoY.
US gasoline demand fell by 871,000 bpd to 8.7 MMbpd on November 17–24, 2017. It fell 9% week-over-week and by 356,000 bpd or 4% YoY. Any fall in gasoline demand is bearish for gasoline and oil (UCO) (DBO) prices.
Lower gasoline prices have a negative impact on US refiners (CRAK) like Tesoro (TSO), CVR Energy (CVI), and Valero (VLO). Lower oil prices have a negative impact on energy producers (IXC) (FXN) like Pioneer Natural Resources (PXD), Energen (EGN), and Marathon Oil (MRO).
Impact of lower gasoline inventories
US gasoline inventories have fallen 14% from their all-time high, which is bullish for gasoline prices. However, they’re above their five-year average, which is bearish for gasoline and oil prices.
Next, we’ll focus on US distillate inventories and their impact on oil prices.
Juniper Networks (JNPR) stock has risen 13% since announcing its 3Q17 results on October 24. JNPR reported net income of $211.1 million in 3Q17, down from $220.5 million in 2Q17.
Hibbett Sports (HIBB) stock surged 22.3% as of 1:54 PM ET today as the company reported impressive results for fiscal 2019's fourth quarter, which ended on February 2.
Wall Street analysts expect a potential upside of 21.63% for Alexion Pharmaceuticals based on the stock's closing price on March 21.
Today, we got another round of dismal data points from Europe (VGK)(EZU). According to a Markit survey, Germany’s (EWG) March PMI Composite Output Index fell to a 69-month low of 51.5.
On March 21, US crude oil’s implied volatility was 24.9%, which was 6.7% below its 15-day average. Usually, lower implied volatility supports oil prices.
The overall cannabis sector took a hit today amid the broader market's declines. The volatility index (VIX) jumped 17.9%, and the cannabis sector is more sensitive than the market.
The tech-heavy NASDAQ Composite Index (QQQ) is on track to post its 12th weekly gain in 13 weeks.