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 10/8/08 For wk 10/3 2008 | ||||||||
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Highlights
Stocks of crude oil and gasoline soared in the Oct. 3 week, up 8.1 million barrels for crude and up 7.2 million for gasoline. Gasoline demand, despite falling prices, is down 5.3 percent year-on-year against a 4.0 percent rise in stocks, a combination that points to lower gas prices ahead. Oil prices dipped $2 in immediate reaction to the news.
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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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