Recently, the federal government’s Energy Information Administration (EIA) issued an overall bullish report, showing a smaller-than-expected build in crude stockpiles. Further, the data showed that gasoline inventories were down as predicted, while distillate stocks also declined, though fell short of expectations. In its release, the agency said that crude inventories rose by 1.3 million barrels for the week ending October 16, much lower than analysts' expectations. This is the second successive week in which the crude buildup has been lower than originally anticipated. A major contributing factor to the modest increase can be attributed to a fall in crude oil imports, which dropped to the lowest level in two months. Current crude oil stocks, at 339.1 million barrels, are 8.9% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart below). The ...

Yesterday, the U.S. Energy Department's weekly inventory release showed a less-than-expected build in crude stockpiles. However, the headline news was centered on a sharp drop in gasoline stocks and refinery utilization that pushed oil prices to a fresh 2009 peak and lifted energy stocks. The federal government’s Energy Information Administration (EIA) reported a 400,000 barrels rise in crude inventories for the week ending October 9, much less than analyst expectations. The modest increase can be attributed to scaled back operations by the refiners (prompted by weak profit margins) even as imports fell. This follows last week’s report, which showed an unexpected rise in oil supply figures, against consensus forecast of a buildup. Current crude oil stocks, at 337.8 million barrels, are 9.6% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart ...

Yesterday, we got a bullish report from the federal government’s Energy Information Administration (EIA), showing a surprise decline in crude stockpiles. However, the data also showed a buildup in gasoline and distillate inventories, thereby somewhat neutralizing the positive impact. In its weekly release, the agency reported a much bigger-than-expected 5.9 million barrels drop in crude inventories for the week ending September 4, as imports fell and refiners raised demand. This follows last week’s release, which also reported crude drawdown but were below expectations. Current crude oil stocks, at 337.5 million barrels, are 13.3% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart below). The supply cover decreased from 23.6 days in the previous week to 22.9 days of supply, but it remains above the year-earlier level of 20.3 days.  ...

Yesterday, the federal government’s Energy Information Administration (EIA) reported mixed inventory data. The crude drawdown was below expectations and distillate stocks were up more than anticipated. On the positive side, gasoline supplies dropped steeply and total U.S. oil demand over the last four-week period turned positive after a long time. In its weekly release, the agency reported a lower-than-expected 372,000 barrels drop in crude oil stockpiles for the week ending August 28, as a jump in imports offset a rise in petroleum demand. This follows last week’s report, which showed an unexpected rise in oil supply figures, missing estimates of a drop. Current crude oil stocks, at 343.4 million barrels, are 13.0% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart below). The supply cover decreased marginally from 23.8 days in ...

Yesterday, we got a bearish report from the Energy Information Administration (EIA), with crude oil stockpiles showing an unexpected rise. In its weekly release, the agency said that crude inventories rose 128,000 barrels from the preceding week, far off estimates that hoped for another drawdown, following last week’s encouraging data. Major contributing factors to the inventory buildup were a rise in domestic production and crude oil imports. Current crude oil stocks, at 343.8 million barrels, are 12.4% above the year-earlier level and remain above the upper limit of the average for this time of the year (depicted in the first EIA chart below). The supply cover increased marginally from 23.7 days in the previous week to 23.8 days of supply and remains significantly above the year-earlier level of 20.5 days. Gasoline stocks were down 1.7 million week over week, better than expectations ...

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Highlights include Chevron Corp. (CVX) and Marathon Oil Corp. (MRO), Schlumberger, Ltd. (SLB) and Transocean, Ltd. (RIG).Today's better-than-expected inventory report helps crude oil hang onto recent gains, even in the face of otherwise bearish news on the economy's front and equity market weakness. Given the continued weak demand and bloated inventories in the country, it remains to be seen if this favorable move on the inventories front, the first drop since February, can be sustained in the coming days.In its weekly inventory report released earlier today, the Energy Information Administration (EIA) reported that commercial crude oil stocks dropped a surprising 4.7 million barrels from the previous week. This contrasted with market expectations of 1.3 million barrels build during the week. Reduced imports offset the impact of the increased refining utilization rate.As the above EIA chart ...

Highlights include Marathon Oil Corp. (MRO), Exxon Mobil Corp. (XOM), ConocoPhillips (COP), BP plc (BP) and Apache Corp. (APA).Marathon's (MRO) first-quarter 2009 results came in better than expected on the back of improved downstream margins and lower costs. As has been the case with the other oil majors that have already reported, Exxon (XOM), ConocoPhillips (COP) and BP (BP), earnings and cash flow comparisons with the year-earlier period were ugly. We continue to like Marathon for its revitalized upstream business, top-tier Midwest-centered refining business, and very cheap valuation.Marathon's recurring EPS of $0.34 was down from $1.07 in the year-earlier period, with the contribution from increased oil and natural gas production and improved refining margins offset by lower realized commodity prices. The company reported production (available for sale) of 429,000 oil-equivalent barrels per day (BOE/d), inline with its ...

Earlier today, Marathon Oil Corp.  (MRO) provided an interim update of its first-quarter 2009 results, with contribution from better than expected oil and natural gas production offset by lower realized commodity prices. We continue to like Marathon for its revitalized upstream business, top-tier Midwest-centered refining business, and very cheap valuation.As we mentioned in our comments on Chevron Corp's  (CVX) preannouncement yesterday, look for negative revisions to earnings estimates for the entire group in the coming days. Marathon is scheduled to report first-quarter results on April 30th.Marathon performed very well in its upstream business, with oil and natural gas production above its own guidance range. The company reported production (available for sale) of 429,000 oil-equivalent barrels per day (BOE/d), significantly above its guidance range of 400,000 to 415,000 BOE/d.This is a 7% sequential production growth, reflecting strong operating performance from the company's ...

Highlights include Suncor Energy, Inc. (SU), Petro-Canada (PCZ), EnCana Corp. (ECA), Canadian Natural Resource Ltd. (CNQ) and Marathon Oil Corp. (MRO).First Major Deal in Oil SpaceCalgary-based Suncor Energy (SU) is acquiring its hometown rival PetroCanada (PCZ) in an all-stock $18 billion deal, including the assumption of about $3 billion in PCZ debt. The boards of both companies have approved the transaction, which will require shareholder and regulatory approvals before completion. The deal is expected to close in the 3rd quarter of this year.PetroCanada shareholders will receive 1.28 Suncor shares for each PCZ share they own. This would represent a roughly 25% premium to the 30-day average PCZ trading price. On completion of the transaction, Suncor shareholders will own roughly 60% of the combined company, while current PetroCanada holders will own the rest.Suncor is a ...