The net imports for crude oil in the week ending May 12, was 7.5 million barrels per day, or bpd, up 577,000 bpd compared to the previous week, as both crude imports and exports surged 970,000 bpd and 393,000 bpd, respectively. The EIA monthly reports for U.S. crude oil imports and exports, released at the end of April, showed that the U.S. crude oil imports in February declined 0.3% year-on-year to 7.89 million bpd, while exports skyrocketed 198.3% to 1.12 million bpd. Based upon our estimation, U.S. crude oil exports could reach 1.42 million bpd in May, making the OPEC production cuts to ease the glut near term less likely. The EIA monthly reports for March 2017 is due on May 31.
Separately, the EIA said the weekly U.S. crude oil production decreased 9,000 bpd, for the week ending May 12, to 9.31 million bpd. U.S. crude oil output increased 48,000 bpd to an average of 9.31 million bpd in May, compared to an April average of 9.26 million bpd. Output has fallen just 3.03% from the peak level of 9.60 million bpd in June 2015. Houston-based oilfield services company Baker Hughes Inc. said on Friday that the U.S. oil rig count rose another 8 to 720, compared to 316, when the rig count hit the low on June 6, 2016.
S&P 500 Summary: +6.38% YTD as of 05/19/17
Barclay Hedge Fund Index: +3.70% YTD
Outperforming Sectors: Information technology +16.95 YTD, Consumer discretionary +9.53% YTD, Healthcare +8.65% YTD, Consumer staples +6.74% YTD, and Utilities +6.56% YTD.
Underperforming Sectors: Materials +5.21% YTD, Industrials +5.23% YTD, Real Estate +2.92% YTD, Financials +0.00% YTD, Energy –10.16% YTD, and Telecommunication services –11.44%