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 8/20/08 For wk 8/15 2008 | ||||||||
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Highlights
There were wild swings in the weekly petroleum inventory data. Crude stocks jumped 9.4 million barrels offset only in part by a deep 6.2 million draw in gasoline stocks. Distillate stocks rose a moderate 0.5 million barrels, all data for the Aug. 15 week. Refineries continue to operate at no better than moderate levels, at 85.7 percent of capacity. Gasoline supply has been ahead of gasoline demand throughout the spring and summer, until now! With the week's big slide, gasoline stocks are down 1.7 percent from this time last year, just about even with a 1.6 percent decline in demand. Oil prices moved lower in initial reaction to the report.
![[Chart]](chart.gif)
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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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