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 11/7/07 For wk 11/2 2007 | ||||||||
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Highlights
Any decline in crude inventories is very likely to feed the frenzy in the oil market where oil is testing $100. Crude oil stocks fell 0.8 million barrels in the Nov. 2 week to 311.9 million. Crude stocks are down a steep 8.0 percent on year though they remain in the upper half of their average range, the latter a fact that hasn't slowed the rise in prices. Gasoline stocks fell 0.8 million barrels in the week while distillate stocks rose 0.1 percent. Refineries operated at a moderate 86.2 percent of capacity.
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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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