Big Gain in Oil Inventory Takes Toll on Crude Prices
The Department of Energy is out with its weekly oil inventory data showing a surprise build-up of crude products. The DOE showed that crude oil Stocks rose by 2.717 million barrels to 380.1 million barrels in the week. We were…
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Gasoline stocks rose a sharp 4.134 million barrels to 210.04 million barrels. The estimate from Dow Jones was for a drop of 500,000. We were expecting a flat reading. United States Gasoline (NYSEMKT: UGA) also fell on the news and is now down by over 2% at $51.28 on the day.
We do not track distillate stocks but these also rose by 1.708 million barrels to 125.239 million barrels. Dow Jones had an estimate of +1.1 million barrels.
The big gain also came in refineries, which ran at a high level of 93.0%. Last week it was 92.0%, and Dow Jones was calling for 91.8%. Phillips 66 (NYSE: PSX) has not really reacted to the higher refining rates and shares are down 0.75% at $34.97, while Valero Energy Corp. (NYSE: VLO) is down by 1.5% at $24.82.
The oil and gas services companies have seen shares pop then drop so far this morning considering this report. The Market Vectors Oil Services ETF (NYSEMKT: OIH) is still down, but off its lows as shares are down 0.4% at $37.12 on the day.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
