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The Zacks Analyst Blog Highlights: ExxonMobil, Chevron, ConocoPhillips, Valero Energy and Marathon Petroleum

Zacks Equity Research

For Immediate Release

Chicago, IL – August 30, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil XOM, Chevron CVX, ConocoPhillips COP, Valero Energy VLO and Marathon Petroleum MPC..

Here are highlights from Thursday’s Analyst Blog:

Oil Rises After EIA Reports Bullish Surprise on All Fronts

Oil prices rose back above $55 a barrel, after U.S. government data showed a crude stockpile draw twice above expectations. The decline in oil inventories was the largest in the U.S. in five weeks, and came in tandem with a fall in gasoline and distillate supplies.

It remains to be seen whether the positive report changes the narrative of the oil market that was in bear territory just weeks ago amid fears of a global economic slowdown in the backdrop of the U.S.-China trade war.

Analysis of the EIA Data

Crude Oil:The federal government’s EIA report revealed that crude inventories fell by 10 million barrels for the week ending Aug 23, compared to the 4.7 million barrels drawdown that energy analysts had expected. A combination of lower imports and higher exports largely drove the massive stockpile decline with the world's biggest oil consumer. This puts the total domestic stocks at 427.8 million barrels – 5.4% above the year-ago figure and in line with the five-year average.

Oil prices drew further support from stockpile draw at the Cushing terminal in Oklahoma. The key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange saw inventories decline 2 million barrels to 40.4 million barrels – the lowest since December.   

The crude supply cover was down from 25.1 days in the previous week to 24.4 days. In the year-ago period, the supply cover was 22.9 days.

Turning to products, and it is a fairly bullish story.

Gasoline:Gasoline supplies fell 2.1 million barrels as demand for the fuel increased by 274,000 barrels per day to 9.9 million barrels per day. Analysts had forecast 530,000 barrels decline. At 232 million barrels, the current stock of the most widely used petroleum product is unchanged from the year-earlier level but exceeds the five-year average range by 3%.

Distillate:Distillate fuel supplies (including diesel and heating oil) were down 2.1 million barrels last week on lower production and higher demand, while analysts were looking for an inventory addition of 700,000 barrels. Current supplies – at 136.1 million barrels – are 4.7% higher than the year-ago level though stocks remain 4% below than the five-year average.

Refinery Rates: Refinery utilization was down 0.7% from the prior week to 95.2%.

About the Weekly Petroleum Status Report

The Energy Information Administration (EIA) Petroleum Status Report, containing data of the previous week ending Friday, outlines information regarding the weekly change in petroleum inventories held and produced by the U.S., both locally and abroad.

The report provides an overview of the level of reserves and their movements, thereby helping investors understand the demand/supply dynamics of petroleum products. It is an indicator of current oil prices and volatility that affect the businesses of the companies engaged in the oil and refining industry.

The data from EIA generally acts as a catalyst for crude prices and affect producers, such as ExxonMobil, Chevron and ConocoPhillips – all carrying Zacks Rank #3 (Hold) – and refiners such as Valero Energy and Marathon Petroleum.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Valero Energy Corporation (VLO) : Free Stock Analysis Report
 
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
 
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
Chevron Corporation (CVX) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
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