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EIA Petroleum Status Report  
Released On 7/15/2009 10:30:00 AM For wk7/10, 2009
PriorActual
Crude oil inventories (weekly change)-2.9 M barrels-2.8 M barrels

Highlights
Inventories of gasoline, diesel and jet fuel continue to build, an indication of weak demand and offsetting another draw in crude oil stocks, down 2.8 million barrels in the July 10 week to 344.5 million. But gasoline stocks rose 1.5 million barrels with distillates up 0.6 million. The report pegs gasoline demand at a very soft 0.6 percent increase from last year, well below earlier expectations for a strong driving season. Distillate demand is down 11.7 percent reflecting low levels of shipping and air transport. Oil popped over $61 in instant reaction to the headline draw in crude, but then settled back to $60.75 on the product headlines. The economy is awash in oil and gas supplies as the energy sector still awaits economic recovery.

Definition
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
 
[Chart]
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.
Data Source: Haver Analytics
 
 

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