Econoday Report: EIA Petroleum Status Report 20, 2007

2008 Economic Calendar

EIA Petroleum Status Report

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

Released on 6/20/07 For wk 6/15 2007

Crude oil inventories (weekly change)
Actual	6.9M barrels
Previous	0.1 M barrels

Highlights
Oil and gasoline inventories rose in the June 15 week but refinery production continued to ease. Stocks of crude oil jumped 6.9 million barrels to 349.3 million and are up 3.2 percent year-on-year. Gasoline stock also jumped, up 1.8 million barrels to 203.3 million but are 5.2 percent lower than last year and remain well below average. Sagging inventories are not in response to lower demand for gasoline, which is up 1.5 percent year-on-year.

Refineries, which were expected to increase production in the week, operated at only 87.6 percent of capacity, well below 90 percent and one of the lowest rates of the year. Stocks of distillate fuels inched 0.1 million barrels higher to 122.7 million.

Despite low refinery production, the gains in crude and gasoline stocks were enough to push down oil prices, which slipped back from $70 in immediate reaction to the results.

Trends

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