The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S., whether produced here or abroad. The level of inventories helps determine prices for petroleum products. Why Investors Care
| Released on 1/24/07 For wk 1/19 2007 | ||||||||
| ||||||||
Highlights
Inventories keep swelling, data that are certain to sink oil prices once again. Crude oil stocks rose 0.8 million barrels in the Jan. 19 week to 322.2 million. Distillate stocks were up 0.4 million and gasoline stocks rose a very heavy 4.0 million barrels. Refineries have been slowing production, operating at 87.4 percent of capacity in the week. A warm winter and slowing economic growth have limited demand for oil. Oil fell nearly $1 toward $54 in initial reaction to the data.
![[Chart]](chart.gif)
|
As is evident from the chart, crude oil stocks can fluctuate dramatically over the year. When oil prices nearly reached $50 per barrel in August 2004, financial market players began to monitor crude oil inventories. It is not surprising to see sharp price hikes in crude oil when inventories are falling. Conversely, one would expect price declines when inventories are rising. |
powered by
![[Econoday]](../../../../../../../../../images/logo.gif){kind=logo}