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 5/7/08 For wk 5/2 2008 | ||||||||
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Highlights
Crude oil stocks jumped 5.7 million barrels in the May 2 week and combined with a 0.8 million barrel rise in gasoline stocks point to a retreat for oil prices. Underscoring the gains is a 0.9 million barrel rise at the key refinery in Cushing, Oklahoma. Refineries are lifting production just slightly, operating at 85.0 percent of capacity as the peak of the driving season unfolds. But inventories of gasoline are still high relative to demand, up 7.6 percent year-on-year compared with only a 0.3 percent rise in demand.
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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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