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 12/27/07 For wk 12/21 2007 | ||||||||
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Highlights
Oil prices are already volatile, made so by the assassination of Pakistani opposition leader Benazir Bhutto and Turkey's strikes against Kurds in Iraq. Adding to the pressure will be weekly inventory data showing a 3.3 million barrel drawdown in crude oil stocks to 293.6 million with a steep 2.8 million barrel drawdown in distillates. Distillate stocks are down 11 percent year-on-year at the same time that demand, because of heavy weather, is up nearly 6 percent. Refineries continue to operate at a moderate rate, 88.1 percent in the latest week. Offsetting readings included a rise in gasoline stocks and a slight rise in crude stocks at the key refinery in Cushing, Oklahoma.
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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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