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 8/29/07 For wk 8/24 2007 | ||||||||
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Highlights
Oil prices are likely to move higher in reaction to this week's inventory figures. Both crude oil stocks and gasoline stocks moved lower with crude down 3.5 million barrels in the Aug. 24 week to 333.6 million and gasoline down 3.6 million to 192.6 million. Though operating at a firm 90.3 percent of capacity in the week, refineries produced less output in the week. Gasoline stocks, down 8.2 percent year-on-year, are well below their average range. A mild offset to the drawdowns is a 0.9 million barrel rise in distillates to 129.9 million.
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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. |
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