US distillate inventories
The EIA estimated that US distillate inventories rose by 0.7 MMbbls (million barrels) or 0.6% to 128.8 MMbbls on December 8–15, 2017. However, inventories fell by 25 MMbbls or 16% YoY (year-over-year).
Analysts expected that US distillate inventories could have fallen by 1.3 MMbbls on December 8–15, 2017. US diesel and oil (USO) (SCO) prices rose on December 20, 2017. US diesel futures rose 0.2% to $1.94 per gallon on December 20, 2017.
Higher diesel prices benefit US refiners (CRAK) like Holly Frontier (HFC) and PBF Energy (PBF). Similarly, higher oil (UCO) prices have a positive impact on energy producers (XLE) (VDE) like Bill Barrett (BBG), SM Energy (SM), and Bonanza Creek Energy (BCEI).
US distillate production and demand
US distillate production fell by 41,000 bpd (barrels per day) or 0.8% to 5.2 MMbpd (million barrels per day) on December 8–15, 2017. However, production rose by 84,000 bpd or 1.6% YoY.
US distillate demand fell by 454,000 bpd or 10% to 4.3 MMbpd on December 8–15, 2017. The demand also fell 14% or by 623,000 bpd YoY. The fall in distillate demand is bearish for diesel and oil (DWT) prices.
US distillate inventories rose for the fourth time in the last five weeks. They rose ~3% in the last five weeks, which is bearish for diesel and oil (USO) prices.
However, US distillate inventories are 3.2% below their five-year average, which is bullish for diesel and oil (USO) prices. Any fall in distillate inventories is bullish for diesel and oil prices.
Read Iran, Libya, and Global Oil Supply Outage Could Impact Oil Prices and Will US Natural Gas Futures Fall More? for updates on oil and gas.
In its December monetary policy statement, the Fed projected three interest rate hikes in 2018 and three in 2019, depending on the incoming economic data.
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.