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 5/14/08 For wk 5/9 2008 | ||||||||
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Highlights
A drawdown in gasoline stocks will probably be reason enough to feed new gains for oil prices. Gasoline stocks fell 1.7 million barrels in the May 9 week, offset in part by a build in distillate stocks and a 0.2 million rise in crude stocks, which at 325.8 million barrels are steady in an average range. Gasoline demand, because of high prices, is down 0.2 percent from this time last year, keeping production down as refineries are operating at only 86.6 percent of capacity. Note that demand for jet fuel is down 5.3 percent from last year.
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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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