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The Zacks Analyst Blog Highlights: Diamond Offshore Drilling, Chesapeake Energy, Marathon Oil, Devon Energy and Lonestar Resources US
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For Immediate Release
Chicago, IL – September 22, 2017 – 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 Diamond Offshore Drilling Inc. (NYSE: – Free Report), Chesapeake Energy Corp. (NYSE: – Free Report), Marathon Oil Corp. (NYSE:(MRO - Free Report) – Free Report), Devon Energy Corp. (NYSE:(DVN - Free Report) – Free Report) and Lonestar Resources USInc. (Nasdaq: – Free Report).
Oil at 4-Month High on Plunging Fuels Supplies, OPEC Talks
Reflecting the resumption of activities post hurricane Harvey, the U.S. Energy Department's inventory release showed that crude stockpiles recorded another large build, while product inventories (gasoline and distillate) fell sharply. In fact, market players welcomed the faster-than-normal return to normalized operations in South Texas region following the storm’s landfall nearly a month ago.
The commodity was also supported by tensions in the Middle East over President Donald Trump's comments on Iran's nuclear deal and talks of an extension to the output cut agreement between OPEC and non-OPEC producers beyond March next year.
Eventually, West Texas Intermediate (WTI) crude futures gained 1.9% (or 93 cents) to settle at $50.41 per barrel Thursday – the highest level since May 24.
Energy Stocks Gain
The bullish data sets encouraged buying in energy stocks, which lifted the Energy Select Sector SPDR – an assortment of the largest U.S. energy companies – almost 0.7% Wednesday. Some of the biggest gainers of the S&P 500 yesterday were oil and oil-related companies like Diamond Offshore Drilling Inc. (NYSE: – Free Report), Chesapeake Energy Corp. (NYSE: – Free Report), Marathon Oil Corp. (NYSE:(MRO - Free Report) – Free Report) and Devon Energy Corp. (NYSE:(DVN - Free Report) – Free Report).
Analysis of the EIA Data
Crude Oil: The federal government’s EIA report revealed that crude inventories jumped by 4.6 million barrels for the week ending Sep 15, following an increase of 5.9 million barrels in the previous week. The analysts surveyed by S&P Global Platts – the leading independent commodities and energy data provider – had expected crude stocks to go up some 2.4 million barrels.
Volume ramp-up from the import and production facilities shuttered in the wake of hurricane Harvey led to the big stockpile build with the world's biggest oil consumer.
Despite the substantial climb in oil storage for a third straight week, current supplies – at 472.8 million barrels – are still marginally below the year-ago period. However, stocks are in the upper half of the average range during this time of the year.
Meanwhile, stocks at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – was up by 703,000 barrels to 59.8 million barrels.
The crude supply cover was up from 29.4 days in the previous week to 30.8 days. In the year-ago period, the supply cover was 30.2 days.
Gasoline: Supplies of gasoline were down for the third week running as Gulf Coast refineries sidelined by Harvey continue to ramp up throughput. The 2.1 million barrels draw – above the polled number of 800,000 barrels fall in supply level – took gasoline stockpiles down to 216.2 million barrels. Following last week’s slide, the existing stock of the most widely used petroleum product is now 4% below the year-earlier level but is in the upper limit of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) went down by 5.7 million barrels last week, compared with analysts’ expectations for one million barrels decrease in supply level. The largest weekly fall since 2011 could be again be attributed to recovering refinery post storm-induced outages. At 138.9 million barrels, current supplies are 15.8% below the year-ago level but are in the bottom half of the average range for this time of the year.
Refinery Rates: Refinery utilization was up by 5.5% from the prior week to 83.2%. While refinery runs rebounded from the previous week’s nine-year lows, it’s still a far cry from the pre-Harvey rates of 96.6% - the highest since 2005. With more units returning to activity over the coming weeks, we expect utilization and throughput to continue to rise.
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.
Headquartered in Fort Worth, TX, Lonestar is oil and gas exploration and production company with primary focus on the Eagle Ford Shale in South Texas. The 2017 Zacks Consensus Estimate for this company is a loss of 62 cents, some 79.7% narrower than 2016. Next year’s average forecast is a loss of 34 cents, pointing to another 45.2% improvement on the back of accretive acquisitions and attractive well economics.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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The Zacks Analyst Blog Highlights: Diamond Offshore Drilling, Chesapeake Energy, Marathon Oil, Devon Energy and Lonestar Resources US
For Immediate Release
Chicago, IL – September 22, 2017 – 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 Diamond Offshore Drilling Inc. (NYSE: – Free Report), Chesapeake Energy Corp. (NYSE: – Free Report), Marathon Oil Corp. (NYSE:(MRO - Free Report) – Free Report), Devon Energy Corp. (NYSE:(DVN - Free Report) – Free Report) and Lonestar Resources US Inc. (Nasdaq: – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday’s Analyst Blog:
Oil at 4-Month High on Plunging Fuels Supplies, OPEC Talks
Reflecting the resumption of activities post hurricane Harvey, the U.S. Energy Department's inventory release showed that crude stockpiles recorded another large build, while product inventories (gasoline and distillate) fell sharply. In fact, market players welcomed the faster-than-normal return to normalized operations in South Texas region following the storm’s landfall nearly a month ago.
The commodity was also supported by tensions in the Middle East over President Donald Trump's comments on Iran's nuclear deal and talks of an extension to the output cut agreement between OPEC and non-OPEC producers beyond March next year.
Eventually, West Texas Intermediate (WTI) crude futures gained 1.9% (or 93 cents) to settle at $50.41 per barrel Thursday – the highest level since May 24.
Energy Stocks Gain
The bullish data sets encouraged buying in energy stocks, which lifted the Energy Select Sector SPDR – an assortment of the largest U.S. energy companies – almost 0.7% Wednesday. Some of the biggest gainers of the S&P 500 yesterday were oil and oil-related companies like Diamond Offshore Drilling Inc. (NYSE: – Free Report), Chesapeake Energy Corp. (NYSE: – Free Report), Marathon Oil Corp. (NYSE:(MRO - Free Report) – Free Report) and Devon Energy Corp. (NYSE:(DVN - Free Report) – Free Report).
Analysis of the EIA Data
Crude Oil: The federal government’s EIA report revealed that crude inventories jumped by 4.6 million barrels for the week ending Sep 15, following an increase of 5.9 million barrels in the previous week. The analysts surveyed by S&P Global Platts – the leading independent commodities and energy data provider – had expected crude stocks to go up some 2.4 million barrels.
Volume ramp-up from the import and production facilities shuttered in the wake of hurricane Harvey led to the big stockpile build with the world's biggest oil consumer.
Despite the substantial climb in oil storage for a third straight week, current supplies – at 472.8 million barrels – are still marginally below the year-ago period. However, stocks are in the upper half of the average range during this time of the year.
Meanwhile, stocks at the Cushing terminal in Oklahoma – the key delivery hub for U.S. crude futures traded on the New York Mercantile Exchange – was up by 703,000 barrels to 59.8 million barrels.
The crude supply cover was up from 29.4 days in the previous week to 30.8 days. In the year-ago period, the supply cover was 30.2 days.
Gasoline: Supplies of gasoline were down for the third week running as Gulf Coast refineries sidelined by Harvey continue to ramp up throughput. The 2.1 million barrels draw – above the polled number of 800,000 barrels fall in supply level – took gasoline stockpiles down to 216.2 million barrels. Following last week’s slide, the existing stock of the most widely used petroleum product is now 4% below the year-earlier level but is in the upper limit of the average range.
Distillate: Distillate fuel supplies (including diesel and heating oil) went down by 5.7 million barrels last week, compared with analysts’ expectations for one million barrels decrease in supply level. The largest weekly fall since 2011 could be again be attributed to recovering refinery post storm-induced outages. At 138.9 million barrels, current supplies are 15.8% below the year-ago level but are in the bottom half of the average range for this time of the year.
Refinery Rates: Refinery utilization was up by 5.5% from the prior week to 83.2%. While refinery runs rebounded from the previous week’s nine-year lows, it’s still a far cry from the pre-Harvey rates of 96.6% - the highest since 2005. With more units returning to activity over the coming weeks, we expect utilization and throughput to continue to rise.
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.
Want to Own an Energy Stock Now?
If you are looking for a near-term energy play, Lonestar Resources US Inc. (Nasdaq: – Free Report) may be a good selection. This company has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Headquartered in Fort Worth, TX, Lonestar is oil and gas exploration and production company with primary focus on the Eagle Ford Shale in South Texas. The 2017 Zacks Consensus Estimate for this company is a loss of 62 cents, some 79.7% narrower than 2016. Next year’s average forecast is a loss of 34 cents, pointing to another 45.2% improvement on the back of accretive acquisitions and attractive well economics.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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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.