EIA Report: Crude Inventories Drop By 0.8 Million Barrels
The EIA released its Weekly Petroleum Status Report. The report indicated...
The EIA released its Weekly Petroleum Status Report. The report indicated that crude inventories declined by 0.8 million barrels from the previous week, compared to analyst consensus of -3 million barrels. At current levels, crude inventories are about 4% below the five-year average for this time of the year.
Total motor gasoline inventories declined by 2.2 million barrels, while analysts expected that they would drop by 1.5 million barrels. Distillate fuel inventories increased by 0.3 million barrels from the previous week.
U.S. crude oil imports declined by 92,000 bpd, averaging 6.6 million bpd. Over the past four weeks, crude oil imports averaged 6.4 million bpd.
Strategic Petroleum Reserve increased from 377.2 million barrels to 377.9 million barrels as U.S. continued to buy oil for reserves.
Domestic oil production decreased from 13.4 million bpd to 13.3 million bpd. From a big-picture point of view, it looks like domestic producers are not ready to push production towards 13.5 million bpd at current oil price levels.
ONEOK to Acquire Permian's EnLink, Medallion Midstream for $5.9 Billion
ONEOK has executed definitive...
ONEOK has executed definitive agreements to buy Global Infrastructure Partners’ (GIP) interests in EnLink Midstream and Medallion Midstream in separate transactions valued at $5.9 billion.
The deals establish ONEOK's fully integrated Permian Basin platform, extending the company’s footprint in the Midcontinent, North Texas, and Louisiana.
In the EnLink transaction, ONEOK will acquire GIP’s interests, consisting of GIP’s 43% share of EnLink’s outstanding common units, for total consideration of $3.3 billion. ONEOK will pay $14.90 per EnLink unit and 100% of the interest in the managing member for $300 million.
Berkshire Hathaway, Reached $1 Trillion in Market Cap
Warren Buffett's Berkshire...
Warren Buffett's Berkshire Hathaway conglomerate reached $1T in market capitalization yesterday. The firm joins just six other US companies currently valued at 13 figures: Apple, Microsoft, Nvidia, Alphabet, Meta, and Amazon.
The conglomerate and its longtime CEO—known among investors as the "Oracle of Omaha"—have averaged 20% annual returns since the native Nebraskan bought Berkshire Hathaway, then a struggling textile manufacturer, in 1965 (see history). The firm has since grown to have controlling shares in roughly 70 companies, with a cash pile of close to $280B (including $234B in US T-bills, making it the Treasury's largest lender). Its success comes as the conglomerate approach—whereby a parent company owns majority stakes in many diverse companies—has declined in recent decades. See a list of Berkshire's current assets here.
Buffett's approach involves long-term investments in undervalued companies, emphasizing high-quality managers in sound businesses. Listen to a high-level summary of his annual shareholder letters here.
Telegram CEO charged over criminal activity on the app. French...
Telegram CEO charged over criminal activity on the app. French prosecutors released billionaire Pavel Durov yesterday but charged him with several crimes related to unlawful activity on the messaging app—including child pornography and drug trafficking—set bail at €5 million (~$5.5 million), and forbade him to leave the country. Authorities say the company has been uncooperative in legal investigations into crime on its platform. Durov’s arrest at a French airport over the weekend led to a global outcry concerning free speech and stood out for holding a tech executive responsible for activity on its app. The CEO faces up to 10 years in prison on the charges, but they could also be dropped if authorities later decide there isn’t enough evidence.
Yelp slapped Google with an antitrust suit, potentially ushering in a wave of litigation from competitors after a federal judge ruled in the government’s favor that Google had an illegal monopoly on search.
Investigators still have not pinpointed a motive for the attempted assassination of Donald Trump, with the FBI saying the shooter researched both Trump and Biden events and picked the Pennsylvania rally as a “target of opportunity.”
Israel carried out large raids in the occupied West Bank, killing at least 10 people identified as Hamas militants, conducting arrests, and sealing off the city of Jenin.
Abercrombie & Fitch’s sales grew 21% last quarter, but the mall staple’s stock fell after its CEO noted the “increasingly uncertain environment” going forward.
The SEC is likely gearing up to sue OpenSea, claiming the NFTs sold on the platform are securities, according to a notice sent to the company.
U.S. crude oil pulls back more than 1%, falls below $75 in second day of losses
U.S. crude oil fell more than 1% Wednesday to settle below $75 per barrel...
U.S. crude oil fell more than 1% Wednesday to settle below $75 per barrel as the market continues to shed gains made earlier in the week on the threat of supply disruptions in Libya.
Here are Wednesday’s closing energy prices:
West Texas Intermediate October contract: $74.52 per barrel, down $1.01, or 1.34%. Year to date, U.S. oil has gained 4%.
Brent October contract: $78.65 per barrel, down 90 cents, or 1.13%. Year to date, the global benchmark is ahead 2.1%.
RBOB Gasoline September contract: $2.21 per gallon, down 3 cents, or 1.43%. Year to date, gasoline is up 5.3%.
Natural Gas September contract: $1.93 per thousand cubic feet, up more than 2 cents, or 1.37%. Year to date, gas is down about 23%.
