Around The Barrel – Big Draws in U.S. Crude Oil and Gasoline as SPR Continues To be Emptied

The U.S. continues to drain it’s SPR which have not alleviated product shortages and the headline risk around the EU phasing out Russian oil by year end. EIA reported US Crude last week drew -3394Kbbl (incl: -2403K Draw at Cushing). Gasoline stocks drew -4779kbbl. Utilization rose -1.80% to 89.4%. Production -100k to 11,800 kbpd. East Coast diesel and heating oil inventories at fresh 32-year low (only data since 1990). The pricing hub of New York Harbor is virtually dry as … Continue reading “Around The Barrel – Big Draws in U.S. Crude Oil and Gasoline as SPR Continues To be Emptied”

US Producer Price Inflation Rose 0.5% m/m and 11.0% y/y in April

US Producer price inflation continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. Annual PPI came in at 11.0% (vs. 11.5% in March) core producer prices were up 8.8% (vs. +9.2% in March). March was the largest increase since data were first calculated in December 2009. Month-over-month the rise was 0.5% in April (consensus +0.5%), and core producer prices rose 0.4% m/m (consensus +0.6%).  April 2022 PPI The Producer Price Index for final demand … Continue reading “US Producer Price Inflation Rose 0.5% m/m and 11.0% y/y in April”

Around The Barrel – US Crude Oil Strategic Reserves Falls at Record Pace to Lowest Since May 2001

Oil prices have continued to chop over $100 WTI as the U.S. continues to drain it’s SPR which have not alleviated product shortages and the headline risk around the EU phasing out Russian oil by year end. East Coast diesel and heating oil inventories at fresh 32-year low (only data since 1990). The pricing hub of New York Harbor is virtually dry. Oil prices continue to fluctuate with geopolitical elements and demand headwinds such as soaring interest rates, China’s COVID … Continue reading “Around The Barrel – US Crude Oil Strategic Reserves Falls at Record Pace to Lowest Since May 2001”

Around The Barrel – US Crude Oil Builds as Gasoline and Distillate Draw Again

Oil prices have been reacting to product shortages and the headlines around the EU phasing out Russian oil by year end. The EIA reported distillates stocks are at 14yr low as demand for jet fuel and diesel take off. Padd 1 diesel inventories are at 25-year lows. Oil prices continue to fluctuate with geopolitical elements and demand headwinds such as soaring interest rates, China’s COVID lockdowns, SPR releases consequences deepening all in the price matrix. SPR lowest in 20 years. … Continue reading “Around The Barrel – US Crude Oil Builds as Gasoline and Distillate Draw Again”

Chevron Earnings Surge as CVX Plans to Raise Permian Production 15% to Grow Domestic Supply

Chevron, the second-largest U.S. oil company after Exxon, on Friday said it made $6.3 billion in quarterly profit, up from about $1.4 billion in the same period last year and slightly below analyst expectations. Chevron Chief Executive Mike Wirth said, “Chevron is doing its part to grow domestic supply,” and aims to raise output in the Permian 15% from 2021 levels this year. “Chevron is doing its part to grow domestic supply,” Fellow oil major Exxon reported Friday also Chevron … Continue reading “Chevron Earnings Surge as CVX Plans to Raise Permian Production 15% to Grow Domestic Supply”

ExxonMobil Earnings Miss Lofty Expectations on Weather and Timing Impacts, Takes Charges of $3.4 billion on Russian Exit.

Oil giant ExxonMobil reported first quarter earnings Friday that missed lofty expectations on a quarter where oil and natural gas prices hit long term highs. The quarter included charges of $3.4 billion, or 79 cents a share, from $XOM’s exit of Russia. Exxon boosted its stock repurchase program to up to $30 billion through 2023. Chevron also reported today. ExxonMobil Inc. (NYSE: $XOM) Reported Earnings Before Open Friday  $2.07 Missed $2.23 EPS and $90.50B Beat $82.8 billion revenue forecast Conference … Continue reading “ExxonMobil Earnings Miss Lofty Expectations on Weather and Timing Impacts, Takes Charges of $3.4 billion on Russian Exit.”

Phillips 66 Repay Debt, Repurchase Shares and Raise Dividend

Houston based oil refiner Phillips 66 on Friday reported better than expected first quarter earnings. PSX Generated $1.1 billion of operating cash flow and repaid $1.45 billion of debt in April. The refiner announced plan to restart share repurchases and increasing the dividend. $PSX is diversifed from refining in both its chemical and pipeline sectors. Phillips 66 Inc. (NYSE: $PSX) Earnings Beat Before Open Friday $1.32 beat $1.14 EPS and $36.72B Beat $29.79 forecast in revenue Earnings Phillips 66 (PSX) … Continue reading “Phillips 66 Repay Debt, Repurchase Shares and Raise Dividend”

Around The Barrel – US Distillate Fuel Oil Stocks at 14yr Lows

The EIA reported distillates stocks are at 14yr low as demand for jet fuel and diesel take off. Padd 1 l diesel inventories at 25-year lows. Oil prices continue to fluctuate with geopolitical elements and demand headwinds such as soaring interest rates, China’s COVID lockdowns, SPR releases consequences deepening all in the price matrix. SPR lowest in 20 years. EIA reported US Crude last week drew -8020bbl (incl: +1298K Build at Cushing). Gasoline stocks drew -1573kbbl. Utilization fell -0.70% to … Continue reading “Around The Barrel – US Distillate Fuel Oil Stocks at 14yr Lows”

Schlumberger Well Construction and Reservoir Performance Lead Earnings With Higher Oil and Gas Price Rises

The world’s largest oil fields service company Schlumberger reported better than expected earnings Friday. Higher demand for its services and equipment, as producers capitalize on a rebound in crude and natural gas prices. Growth was driven by its core divisions: Well Construction and Reservoir Performance. SLB also announced a 40% increase in its quarterly cash dividend, from $0.125 per share to $0.175 per share. Schlumberger Ltd NYSE: SLB Reported Before Open Friday $0.39 EPS Beat $0.36 EPS AND $5.8 Bil Missed $5.9 Billion as Forecast in … Continue reading “Schlumberger Well Construction and Reservoir Performance Lead Earnings With Higher Oil and Gas Price Rises”

Around The Barrel – US Crude Oil Draws -8.02 Billion Barrels Reverses Last Week’s +9.38Bbbls Build

Oil prices volatility continues with news bombs galore, SPR releases, rising interest rates and Covid shutdowns in China and the Russian Ukraine war consequences deepening all in the price matrix. Distillates stocks near 8yr low as demand for jet fuel and diesel took off. SPR lowest in 20 years. EIA reported US Crude last week drew -8020bbl (incl -180kbbl Draw at Cushing). Gasoline stocks drew -761kbbl. Utilization rose 1.00% to 90.2%. Production rose +100k at 11,900 kbpd. Around The Barrel Contents … Continue reading “Around The Barrel – US Crude Oil Draws -8.02 Billion Barrels Reverses Last Week’s +9.38Bbbls Build”