|Bid||73.26 x 1000|
|Ask||74.75 x 1000|
|Day's Range||73.20 - 74.20|
|52 Week Range||61.80 - 78.39|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.14%|
Commodities rallied furiously Thursday morning, but leveled off by the afternoon -- a lesson for any investor to be wary of any asset class that rises too much, too fast. Brent crude gained 0.41% to $73 per barrel, West Texas Intermediate was roughly flat ending the day at around $68. Earlier in the session, Brent and WTI had both been up more than 1%.
The US Bureau of Labor Statistics releases a monthly report that tracks price trends in wholesale markets. Industries from the manufacturing sector (XLI) are surveyed for changes in input prices, and this survey data is used to construct the PPI (Producer Price Index). The survey comprises questions on raw material prices, production levels, and finished goods.
The EIA released its weekly crude oil inventory report on April 18, 2018. The EIA reported that US crude oil inventories decreased by 1 MMbbls (million barrels) to 427.5 MMbbls on April 6–13, 2018. The inventories dropped by 104.7 MMbbls or ~20% YoY (year-over-year).
May 2018 WTI crude oil futures contracts rose 0.9% from the previous settlement and were trading at $67.13 per barrel at 2:25 AM EST on April 18, 2018.
Hedge funds’ net long position in WTI crude oil futures and options contracts trading in NYMEX and ICE decreased by 3,275 to 441,634 on April 3–10, 2018. The net long positions fell for the second straight week.
As of the week ending April 13, 2018, the US rig count was 1,008, up 8.5% compared to the week ending December 29, 2017. Growth in the US rig count could boost Halliburton’s (HAL) revenues and earnings growth in 1Q18. The US rig count increased 41% in 4Q17 compared to the US rig count in 4Q16. Revenue by geography
Whiting Petroleum (WLL) stock has shown stellar performance since the beginning of this year, rising ~35% since the start of 2018. On a year-over-year basis, the stock has risen ~13%.
Bernie Schaeffer of Schaeffer’s Investment Research published this piece on Sunday, April 15th. (See below the dotted line.) So far the bulls have carried the week, though. ———————————————————- “And while we’re on the topic of XLE extremes, we would ...
Energy stocks and the Energy Select Sector SPDR (XLE) , the largest equity-based energy exchange traded fund, are in rally mode. For its part, XLE is up nearly 7% over the past week, indicating that the fund is taking advantage of some favorable seasonality for the energy sector. Top holdings include well-known names such as Exxon Mobil (XOM), Chevron Corp ( CVX ), and ConocoPhilips (COP) .
USA Compression Partners (USAC), CSI Compressco (CCLP), and Archrock Partners (APLP) are up 11%, 32%, and 4%, respectively, so far in 2018. The compression services MLPs outperformed the Alerian MLP ETF (AMLP) and the Energy Select Sector SPDR ETF (XLE) during this period. AMLP and XLE are down nearly 7% and 1%, respectively, year-to-date.
Hess’s (HES) stock has mostly been on an uptrend since the beginning of this year. Year-over-year, Hess stock has risen ~7.85%. Crude oil prices (DBO)(USO) have increased ~26.72%. Meanwhile, the broader energy ETF—the Energy Select Sector SPDR ETF (XLE)—has increased 3.03%. The broader market ETF—the S&P 500 SPDR ETF—has increased ~14.04%.
Golub highlights the company’s low multiples, which follow on the heels of its underperformance in recent years, while also noting that each of the major subgroups has “delivered superior earnings growth since mid-2016.” He believes that higher oil prices and strong global economic growth will support profit and sales growth over the next year. The Technology Select Sector SPDR ETF (XLK) is up 2% to $68.14 this afternoon, while the Energy Select Sector SPDR ETF (XLE) is up 0.6% to $72.57.
The United States Oil Fund (USO) , which tracks West Texas Intermediate crude oil futures, is up more than 9% over the past month while the Energy Select Sector SPDR (XLE) , the largest equity-based energy exchange traded fund, is higher by “just” 6.7% over that same period. Market observers and analysts argue that U.S. energy stocks are in a position to outperform broader equity markets this year, even if oil prices don’t move higher. The energy industry has grown more efficient after cutting costs in response to the plunge in crude oil prices in previous years, so they are now in a better position to improve revenue at lower oil prices.
According to a Wall Street Journal report, Canadian Prime Minister Justin Trudeau reiterated his support for Kinder Morgan’s (KMI) Trans Mountain expansion project. The report also mentioned that Trudeau asked Finance Minister Bill Morneau to discuss financial support for Kinder Morgan to remove the project’s risks and uncertainties.
The EIA is scheduled to release its weekly crude oil inventory report on April 18, 2018. Market surveys estimate that Cushing inventories could have increased on April 6–13, 2018. A larger-than-expected increase in Cushing inventories could pressure oil prices.
In the week that ended on April 13, 2018, crude oil (USO) prices rose significantly from $62.06 per barrel to $67.39 per barrel, a rise of almost 9%. Crude oil prices saw a very strong positive trend within the week, rising on all five days.
Baker Hughes, a GE Company’s (BHGE), one-year returns were -22% as of April 12, 2018. In comparison, since April 13, 2017, the Energy Select Sector SPDR ETF (XLE) increased ~2%. XLE tracks an index of US energy companies. The VanEck Vectors Oil Services ETF (OIH) recorded -12% one-year returns. OIH tracks an index of 25 oilfield equipment and services (or OFS) companies. So BHGE underperformed XLE and OIH in the past year.
From 4Q16 to 4Q17, the companies constituting the Energy Select Sector SPDR ETF (XLE) increased their capex 9%. XLE tracks an index of US energy companies in the S&P 500 Index. Baker Hughes, a GE Company (BHGE), is 1.0% of the Energy Select Sector SPDR ETF (XLE). In the past year, crude oil prices increased ~26%. Higher crude oil prices can lead to higher exploration and production activities by upstream producers, which in turn can boost oilfield services companies like Baker Hughes’s revenues and earnings in 1Q18.