Oil inventory data
In the week ending January 12, 2018, US crude oil inventories declined by 6.9 MMbbls (million barrels) to 412.7MMbbls—around five times more than the markets’ expected fall. After the EIA (U.S. Energy Information Administration) released the data on January 18, US crude oil prices were almost flat due to other factors like rising US production.
For example, the inventories spread was ~25% in September 2017. Since then, the inventories spread has declined by ~19 percentage points. US crude oil prices rose 27.3% during this period.
In the week ending January 12, 2018, the inventories spread contracted by 2 percentage points. However, US crude oil futures fell 0.7% after the inventory data on January 18, 2018. We already discussed the factor that could have obstructed oil’s (UCO) (BNO) (OIIL) rise.
A rise up to 5.2 MMbbls in US crude oil inventories for the week ending January 19, 2018, won’t increase the inventories spread. Any fall in the EIA data scheduled for January 24, 2018, could help oil prices rise.
Prices advanced as Saudi Arabia and Russia signaled an extension of ongoing production cuts beyond 2018. The US dollar (UUP) is near a three-year low.
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.
On March 22, J.P. Morgan (JPM) downgraded PPG Industries' (PPG) rating to "underweight" from "neutral."
The week ending March 22 was a mixed bag for the cannabis sector. The cannabis sector ETFs ended largely in the negative territory.