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 6/25/08 For wk 6/20 2008 | ||||||||
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Highlights
Crude oil stocks rose 0.8 million barrels in the June 20 week to 301.8 million but are still down a steep 14.4 percent year-on-year. Gasoline stocks, down 0.1 million to 208.8 million, are up 2.3 percent year-on-year but against a decline in demand of 2.1 percent -- an imbalance that should point to easing price pressure. Refineries continue to operate at only moderate rates of production, at 88.6 percent of capacity in the week. Distillate stocks jumped 2.8 million barrels to 119.4 million reflecting a 3.6 percent contraction in demand for jet fuel. Oil prices slipped in initial reaction to the data.
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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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