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 11/15/07 For wk 11/9 2007 | ||||||||
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Highlights
A move to $100 oil this week won't be justified by crude oil stocks, which rose 2.8 million barrels in the Nov. 9 week to 314.7 million. Gasoline stocks also rose, up 0.7 million barrels to 195.0 million. But there was some bad news in the report that speculators may grab on to, a 2.0 million barrel decline in distillate stocks. Distillates are more and more closely watched as the heating oil season approaches on the East Coast. Oil prices did in fact fall back in initial reaction to the data.
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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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