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 9/4/08 For wk 8/29 2008 | ||||||||
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Highlights
Petroleum stocks were drawn down across the board in the Aug. 29 week, led by a 1.9 million draw in crude oil stocks to 303.9 million barrels. Gasoline stocks were drawn down by 1.0 million barrels to 194.4 million with distillate stocks down 0.4 million to 131.7 million. Refineries increased output in the week, operating at 88.7 percent of capacity and suggesting that the approach of Hurricane Gustav, which made landfall on Sept. 1, did not limit the week's output. Oil prices rose in immediate 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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