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 7/30/08 For wk 7/25 2008 | ||||||||
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Highlights
Crude oil stocks slipped 0.1 million barrels in the July 25 week to 295.2 million. But the headline from the report, and one that is likely to lift oil prices, is a steep drawdown in gasoline stocks, down 3.5 million barrels to 213.6 million. In a partial offset, distillate stocks rose 2.4 million barrels to 130.5 million. Oil prices did in fact move higher in reaction to the report.
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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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