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 12/19/07 For wk 12/14 2007 | ||||||||
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Highlights
Crude oil stocks dropped 7.6 million barrels in the Dec. 14 week, a steep drawdown but offset in part by a slight rise of 0.1 million barrels at the Cushing, Oklahoma refinery and a rise of 3.0 million barrels for gasoline. But another big negative in the report was a 2.1 million barrel drawdown in distillates, a category that includes home heating oil and is closely watched at this time of year. Crude oil stocks are down a very sizable 8.7 percent year-on-year. Distillate stocks are 1.6 percent lower than this time last year while demand is 4.3 percent higher. Refinery operation is light, at only 87.8 percent of capacity in the week. Today's data point to tight supply and rising demand -- and are certain to heat up the pressure once again on oil prices.
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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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