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 8/27/08 For wk 8/22 2008 | ||||||||
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Highlights
A drawdown in gasoline stocks is likely to give oil prices a new boost. Gasoline stocks fell 1.2 million barrels in the Aug. 22 week to 195.4 million. Refineries, which have been holding down output, boosted output of gasoline in the week, operating at a less mild 87.3 percent of capacity. A key reason that refineries have been holding back production is that gasoline stocks have been heavy compared to demand all year, but stocks are now moving closer in line with demand: stocks are down 1.1 percent year-on-year with demand down 1.6 percent.
Other data in today's report include a 0.1 million barrel drawdown in crude oil stocks to 305.8 million barrels and no change in distillate stocks at 132.1 million barrels.
![[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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