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 11/5/08 For wk 10/31 2008 | ||||||||
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Highlights
Though oil stocks were unchanged in the Oct. 31 week at 311.9 million barrels, other readings in today's report are likely to weigh on oil prices. Oil stocks at the key Cushing, Oklahoma refinery rose 1.8 million barrels, total gasoline stocks rose 1.1 million with total distillates up 1.2 million.
Demand for gasoline is weak but a little less weak than prior readings, down 2.3 percent year-on-year in a decline that compares with a 1.3 percent decline in stocks. Refineries continue to operate at moderate rates, at 85.3 percent of capacity in the latest week. Oil prices moved lower 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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