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The Zacks Analyst Blog Highlights: ExxonMobil, ConocoPhillips, Valero Energy, Marathon Petroleum and Phillips 66

Zacks Equity Research

For Immediate Release

Chicago, IL – November 22, 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, ConocoPhillips COP, Valero Energy VLO, Marathon Petroleum MPC and Phillips 66 PSX.

Here are highlights from Thursday’s Analyst Blog:

What’s Behind Oil’s Price Gains?

Oil markets rose on Wednesday, driven by a less-than-anticipated weekly increase in U.S. crude inventories.

Below we review the EIA's Weekly Petroleum Status Report for the week ending Nov 15.

Crude Oil:The federal government’s EIA report revealed that crude inventories rose by 1.4 million barrels, compared to the 1.6 million barrels increase that energy analysts had expected. Record U.S. crude production, which held steady at a whopping 12.8 million barrels per day, largely drove the stockpile build with the world's biggest oil consumer. However, the drawdown was capped below projections as refineries ramped up output.

This puts the total domestic stocks at 450.4 million barrels – 0.8% above the year-ago figure and 3% higher than the five-year average.

The oil market also drew some 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 fall 2.3 million barrels to 44.2 million barrels.

The crude supply cover was down from 28.3 days in the previous week to 28.1 days. In the year-ago period, the supply cover was 27 days.

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

Gasoline:Gasoline supplies increased for the second time in eight weeks. The fuel’s 1.8 million barrels rise is attributable to lower demand, which went down by 129,000 barrels to 9.2 million barrels per day. Analysts had forecast 750,000 barrels climb. At 220.8 million barrels, the current stock of the most widely used petroleum product is 2% below the year-earlier level but exceeds the five-year average range by 2%.

Distillate:Distillate fuel supplies (including diesel and heating oil) were down a ninth consecutive week. The 974,000 barrels decline was less than the inventory draw of 1.4 million barrels that analysts were looking for. Current supplies – at 115.7 million barrels – are 2.9% lower than the year-ago level and remain 11% below than the five-year average.

Refinery Rates: Refinery utilization was up 1.7% from the prior week to 89.5%.

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 and ConocoPhillips and refiners such as Valero Energy and Marathon Petroleum.

Want to Own an Energy Stock Now?

In case you are looking for a near-term energy play, Phillips 66 might be a good selection. The diversified energy operator focusing on four main business segments – refining, marketing, chemicals and storage & transportation, has a Zacks Rank #2 (Buy).

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

The Houston, TX-based company has seen the Zacks Consensus Estimate for 2019 rise 9.1% over 30 days.

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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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Phillips 66 (PSX) : Free Stock Analysis Report
 
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
 
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
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