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 ...

Tesoro Corp. (TSO) shipped its first barrels of crude oil through a reversed Panama pipeline, which runs from the Atlantic to the Pacific Basin. Owned by Petroterminal de Panama (PTP), a cooperative venture between the Government of the Republic of Panama and private industry, the 81-mile pipeline formerly flowed from the Pacific to the Atlantic.   At the time of signing the agreement to use the PTP pipeline in December 2008, Tesoro said that it will ship 107,000 barrels per day (Bbl/d) of crude through the pipeline under a seven-year agreement.   Reversal of the pipeline establishes a new conduit for crude oil transportation and will help Tesoro to economically deliver a broader range of crude oils produced in Africa, the Atlantic region of South America and the North Sea, through Panama, to the company's five Pacific Rim refineries (two in California and one each in Washington, Hawaii ...

Our downgrade of Tesoro Corp. (TSO) shares reflects our weak refining margin outlook. A growing supply overhang in the face of recession-induced fall in global oil product demand has led to a squeeze in refiners profits. Narrower crude quality spreads have also started to weigh on refining margins.Tesoro's lack of geographic diversification given its West Coast-centric operating footprint and heavy exposure to the weak California market could also become a major liability. Given these headwinds, we expect the independent refiners to underperform the broader equity markets in general and the oil and gas group in particular.Overall, we see a fairly unfavorable macro backdrop for independent refiners in general and Tesoro in particular. We believe this will cause an underperformance in Tesoro shares relative to the market as well as the sector in the coming quarters. Our new $13 price objective reflects 2009 P/CF multiple ...

Tesoro Corp. (TSO) jumped nearly 5% this noon to move past a short-term level of resistance at $14.66. Tesoro is a Zacks#2 Rank ("Buy") stock that has topped the consensus estimate in 2 of the last 4 quarters. 17 analysts, on average, see the company's full-year earnings per share rising by 2.21% to $1.55.

Zacks Investment Research

We are maintaining our Buy recommendation for Tesoro Corp. (TSO) shares ahead of the company s first-quarter 2009 results. Given our continued positive view of the group's underlying fundamentals, we believe there is potential for significant upside for this well-positioned refining name.We particularly like Tesoro for its West Coast leverage and strong balance sheet with the ability to fund capex with operating cash flows. Tesoro is also expected to benefit from the seasonal trade -- refiners have historically performed well in the spring/summer months.Tesoro's strong leverage to the key West Coast market got a further boost from last year's Shell refinery acquisition, is particularly valuable. Our unchanged $25 price objective results from using a 2009 P/E multiple of 17.9x, which is within historical ranges. Read the full analyst report on "TSO"Zacks Investment Research

Tesoro Corp's (TSO) MACD indicator is signaling a cross over to bullish territory with a reading of 0.1328. The Zacks #2 Rank ("Buy") stock has gained more than 5% to $15.5 in afternoon trade. The consensus estimate for the current fiscal year has increased by 23 cents over the past 60 days to $1.55 per share.

"TSO" Free Stock Analysis: Buy? Sell? Hold?Zacks Investment Research

Highlights include Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Valero Energy Corp. (WLO) and Tesoro Corp. (TSO).    A Convoluted New Tax on the Oil and Gas IndustryThe $3.6 trillion budget proposal unveiled yesterday includes a slew of proposals aimed at encouraging green and renewable energy at the expense of conventional hydrocarbon-sourced energy. The budget raises taxes on existing energy sources and uses part of that money to fund renewable energy technologies.On the whole, the proposed changes negatively affect companies like Exxon (XOM), Chevron (CVX) and refiners like Valero (WLO) and Tesoro (TSO).The budget's capstone initiative in the energy space involves the creation of a cap-and-trade system that forces companies to buy permits to be allowed to emit carbon dioxide and other polluting gases. The plan is expected to bring in approximately $80 billion ...

We are maintaining our Buy recommendation on Tesoro Corp. (TSO) shares despite expectations of continued near-term margin weakness on the back of high feedstock costs and increased operating expenses.

The company’s realized margin during the second quarter was down 52% from the year-earlier level as record crude oil prices and anemic product demand squeezed margins. However, our long-term view of the business remains favorable, as margins appear to have bottomed and valuations have become particularly compelling.

Tesoro’s core West Coast refining market has above national-average gasoline demand growth and has consistently maintained higher margins than most of the other parts of the country. The management remains focused on balance sheet improvement and organic growth initiatives. The company’s improving financial health enabled management to start returning cash to shareholders.

Looking at the longer-term, Tesoro is reviewing other initiatives such as reducing the cost of energy consumed and emissions generated and allocating capital

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