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 1/3/08 For wk 12/28 2008 | ||||||||
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Highlights
Weekly inventory data were mixed showing a steep 4.1 million barrel drawdown in crude stocks against sizable increases in distillates, up 1.9 million barrels, and gasoline, up 0.6 million. Crude stocks at the closely watched refinery in Cushing, Oklahoma were unchanged. Refineries picked up production in the week, reflected in the rising inventories of distillates and gasoline and a slight rise in capacity utilization to 89.4 percent. Oil prices, holding near $100, may react most to the drawdown in crude given persistent supply concerns.
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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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