US: EIA Petroleum Status Report


Wed May 06 09:30:00 CDT 2015

Actual Previous
Crude oil inventories (weekly change) -3.9M barrels 1.9M barrels
Gasoline (weekly change) 0.4M barrels 1.7M barrels
Distillates (weekly change) 1.5M barrels -0.1M barrels

Highlights
For the first time since the very beginning of the year, weekly oil inventories fell, down 3.9 million barrels in the May 1 week to 487.0 million barrels. Imports of oil were down sharply while refineries, which decreased gasoline production in the week, cut back on demand. Oil is little changed following the report, just at $62 for WTI.

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.



Description
Petroleum product prices are determined by supply and demand - just like any other good and service. During periods of strong economic growth, one would expect demand to be robust. If inventories are low, this will lead to increases in crude oil prices - or price increases for a wide variety of petroleum products such as gasoline or heating oil. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much. During a period of sluggish economic activity, demand for crude oil may not be as strong. If inventories are rising, this may push down oil prices.

Crude oil is an important commodity in the global market. Prices fluctuate depending on supply and demand conditions in the world. Since oil is such an important part of the economy, it can also help determine the direction of inflation. In the U.S., consumer prices have moderated whenever oil prices have fallen, but have accelerated when oil prices have risen.