Released On 10/7/2009 10:30:00 AM For wk10/2, 2009
Crude oil inventories (weekly change)
2.8 M barrels
-1.0 M barrels
A big build in gasoline and yet another build in distillate stocks more than offset a small draw in crude. Gasoline stocks rose 2.9 million barrels with distillates up 0.7 million. Crude stocks fell 1.0 million barrels. Data are for the Oct. 2 week. Refineries continue to operate at a moderate rate, at 85.0 percent of capacity. Gasoline demand is the good news in the report, up a very strong 6.2 percent year-on-year and hinting at consumer strength. Oil is moving about 75 cents lower following the report, currently at $70.50.
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
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