Around The Barrel – US Crude Oil Stocks Continue to Build, Adding 31.2Mbbls in just 4 Weeks.

The relentless build in US crude oil inventories continued this week with another +4.140Mbbls, bringing the last 4 weeks build to 31.242Mbbls. Stocks have been building rather stoically in 2023, specifically at the Cushing WTI futures Hub. The EIA reported another +2.315M build there, following +4.267Mbbls, +3.646Mbbls and +2.511Mbbls the prior weeks. Gasoline also had another sizeable build of +2.576M following +1.763Mbbls +3.483Mbbls and +4.114Mbbls the prior weeks. Crude builds have been +533Kbbls, +8.408Mbbls and +18.161Mbbls the weeks prior. Futures … Continue reading “Around The Barrel – US Crude Oil Stocks Continue to Build, Adding 31.2Mbbls in just 4 Weeks.”

Demand for Caterpillar Construction and Energy Equipment Boost Sales 20%

Irving, Texas-based Caterpillar, a Dow component and gauge for global economic health reported mixed fourth-quarter numbers on Tuesday before the market open. $CAT missed on earnings but beat on revenue. The company saw strong demand for its construction and mining equipment and engines for transportation and energy generation despite higher prices. Sales came to $16.60 billion for the quarter, topping Wall Street expectations. CAT was trading $249.62 -11.88 (p 4.54%) Pre-Market  Foreign-exchange headwinds however weighed on profit and its operating … Continue reading “Demand for Caterpillar Construction and Energy Equipment Boost Sales 20%”

Exxon Mobil Benefits from Countercyclical Investments Delivering Record Annual Profit

Energy giant ExxonMobil, the largest U.S. oil company, reported better than expected fourth-quarter earnings Tuesday but revenue fell short of estimates. Revenue rose to $95.429 billion from $84.965 billion a year ago, below the $97.345 billion FactSet consensus. XOM delivered its highest-ever annual profit in 2022 fueled by surging oil prices to resurrect it as one of America’s most profitable companies and erase billions of dollars of losses incurred during the pandemic. Exxon reaped the benefits of its countercyclical investments … Continue reading “Exxon Mobil Benefits from Countercyclical Investments Delivering Record Annual Profit”

Five Factors in a Constructive Strategy for Investing in Commodities

Investing in commodities is something that needs to be done within a constructive strategy to understands risks and opportunity. There are many factors to consider individually depending on one’s access, location and financial position. Five factors to consider are monitoring the market, monitoring supply and demand dynamics, diversification, long-term focus and dollar cost averaging. Constructive Strategy Investing in Commodities Could Include: 1. Monitoring the market: Stay up to date on the latest market developments and adjust your investment strategy as … Continue reading “Five Factors in a Constructive Strategy for Investing in Commodities”

Traders Market Weekly: Big Three Central Banks Resolve to be Tested.

January 29 – Feb 4, 2023 FEAR NOT Brave Investors Where have we been and where are we going? Join our weekly market thread on Traders Community… The Week That Was – What Lies Ahead? Contents Click on the links below to navigate to the relevant section. Editorial The rally that started last Friday continued all week until a sharp pullback ahead of this Friday’s close. A rational sign given the data, banker and earnings deluge next week. We have … Continue reading “Traders Market Weekly: Big Three Central Banks Resolve to be Tested.”

Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues

Trends continued to play out this week, partially short squeeze induced, partly resurgent speculation with a significant loosening of financial conditions continues to feed the reversal in risk. The VIX fell another 3% Friday to the lowest since last January. One commodity not benefiting is natural gas futures, down another 7% or 10% depending on what month you are unfortunate to be long in. Notably the rest of the energy complex was down this week also. Copper had been a … Continue reading “Commodity Traders Weekly Outlook: Lumber Rebound and Natural Gas Slide Continues”

Chevron Q4 Earnings Lower Than Expected with Higher CapEx and Lower Volumes

Chevron, the second-largest U.S. oil company after Exxon, on Friday reported Q4 adjusted earnings that missed expectations, while revenues topped forecasts. CVX Q4 net income rose to $6.35B, or $3.33/share, from $5.05B, or $2.63/share, in the year-ago period, but fell from $11.2B in Q3, as $1.1B in write-downs in international oil and gas operations left adjusted earnings short of forecasts. For the full year, Chevron said earnings totaled $35.5B for its highest-ever annual profit, more than double the prior year … Continue reading “Chevron Q4 Earnings Lower Than Expected with Higher CapEx and Lower Volumes”

EIA Reports WTI Cushing Crude Oil Storage Hub Filling Up Rapidly, +11Mbbls in 3 Weeks.

US crude oil inventories have been building rather stoically in 2023, specifically at the Cushing WTI futures Hub. There was a build +4.267Mbbls this week, following +3.646Mbbls and +2.511Mbbls the prior weeks. Gasoline also had another sizeable build of +1.763Mbbls following +3.483Mbbls and +4.114Mbbls the prior weeks. For crude EIA reported a build of +533Kbbls much lower than the +8.408Mbbls and +18.161Mbbls the weeks prior. Higher futures prices suggest traders appear to be ignoring large US builds and have chosen … Continue reading “EIA Reports WTI Cushing Crude Oil Storage Hub Filling Up Rapidly, +11Mbbls in 3 Weeks.”

Halliburton Earnings Beat with Free Cash Flow Up 79% in a Year

Houston-based oil and gas servicing giant Halliburton reported better than expected fourth quarter earnings Tuesday before the market. HAL posted adjusted income of $656 million, or 72 cents per share, for the quarter compared with a 67 cent EPS consensus. It wasn’t long ago oil services companies were debt laden and loss making, free cash flow was up 79% y/y in Q4 2022. HAL followed up a mixed start to earnings season for the world’s top oilfield services providers with … Continue reading “Halliburton Earnings Beat with Free Cash Flow Up 79% in a Year”

Texas Oil and Natural Gas Industry Paid a Record $24.7 Billion in Taxes and Royalties in 2022

The surge in oil and natural gas prices was a boon for the state of Texas in 2022. The Texan oil and natural gas industry paid a record $24.7 billion in taxes and royalties last year, crushing the previous annual high of $16 billion set in 2019 by 54%, according to the Texas Oil and Gas Association. The money goes toward funding a range of public interests such as education through public schools and universities, roads, first responders and other … Continue reading “Texas Oil and Natural Gas Industry Paid a Record $24.7 Billion in Taxes and Royalties in 2022”