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 5/21/08 For wk 5/16 2008 | ||||||||
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Highlights
Refineries increased production but oil and gasoline inventories fell, results that will feed the run higher in oil prices. Crude oil stocks fell a steep 5.4 million barrels in the May 16 week to 320.5 million with gasoline stocks down 0.8 million to 209.4 million. Distillate stocks rose 0.7 million barrels to 107.8 million. Refineries operated at 87.9 percent of capacity, one of the strongest rates of the year. Though crude stocks are down 6.5 percent year-on-year, gasoline stocks are up 4.9 percent and are well ahead of demand which, due to high prices and the soft economy, is down 0.4 percent. Oil prices bounced back above $130 in immediate reaction to the results.
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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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