Energy

Oil Inventories & Capacity Act As Booster (OIH, VLO, PSX, USO)

The U.S. Department of Energy has released its weekly oil inventory data showing a build up in crude inventories as expected.  The rise came to +2.128 million barrels of crude oil to 381.64 million barrels, which is higher than the 1.4 million projected by Dow Jones and higher than the 1.5 to 2.0 million barrels we had been looking for.

Gasoline stocks drained as crude rose, with a drop of -2.797 million barrels to 204.3 million barrels.  Dow Jones was expecting a drop of only 300,000 and we were only expecting a drop of 500,000 or a tad more.

Distillate stocks fell by 969,000 barrels down to 119.8 million barrels.  Dow Jones was calling for a drop of only 200,000 barrels and we do not track estimates on this reading.

The big reading comes on the refining side as refineries ran at 88.3% capacity in the last week.  This is up from 86.4% the prior week and well above the 86.7% expected from Dow Jones.  We were hoping for 87% but any gains would have been welcome here if you are in the camp of ample supplies of gasoline and other finished products ahead of the key Memorial Day weekend surge in gasoline demand.

Market Vectors Oil Services ETF (AMEX: OIH) has risen into this news with a gain of 1.9% to $36.94 and this is off of nearly 52-week lows as the 52-week range is $35.80 to $45.14.  That refining capacity should be a boost for Valero Energy Corporation (NYSE: VLO) with again of 3.4% at $22.25 and the newly-listed Phillips 66 (NYSE: PSX) with a gain of 1.4% at $32.12.

Even the United States Oil (AMEX: USO) is up 0.6% at $35.50.

JON C. OGG

Essential Tips for Investing (Sponsored)

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.