$UWT A Bloomberg survey estimates that the crude oil inventories at Cushing could have declined by 2.3 MMbbls (million barrels) on January 12–19, 2018. The EIA will release its crude oil inventories report on January 24, 2018.
Any decrease in Cushing inventories has a positive impact on oil (USO) (SCO) prices. WTI oil (DBO) prices are near a three-year high. It favors funds like the Vanguard Energy ETF (VDE), which has exposure to US energy stocks.
$XLU Utilities (NYSEARCA:XLU) took the unusual position of leading all investor groups in today's trade, perhaps because the 10-year Treasury yield pulled back to 2.9% today after nearly hitting 2.95% early this morning, says Ben Levisohn at Barron's.
Utilities have suffered their worst two-month return since 2009, notes Instinet's Frank Cappelleri, who says "extreme pullbacks like this since the 2009 lows led to bounces in the XLU" and that such moves often accompany a reversal in yields.
Yields may not have much more room to run, says MKM Partners analyst Michael Darda, who thinks economic growth could be near a cyclical peak, which would hold the 10-year Treasury yield near 3%; if nominal GDP drops back below 4% in 2019, then the 10-year could fall to ~2.5%, making yield-sensitive groups such as utilities look attractive, Darda says.
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