Econoday Report: EIA Petroleum Status Report August 12, 2009

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EIA Petroleum Status Report

Released on 8/12/2009 10:30:00 AM For wk8/7, 2009

	Prior	Actual
Crude oil inventories (weekly change)	1.7 M barrels	2.5 M barrels

Highlights
Crude oil continues to back up in storage, the result of weak demand that raises the question whether prices are over-anticipating economic recovery. Crude stocks rose 2.5 million barrels in the Aug. 7 week to 352.0 million. Gasoline stocks fell 1.0 million barrels to 211.9 million as refineries, operating at 83.5 percent of capacity, cut back output. Despite easing pump prices, gasoline demand is weakening, now flat vs. a year ago. Stocks of distillates rose 0.8 million barrels. Oil prices dipped in immediate reaction to the results.

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

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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