|Crude oil inventories (weekly change)||-1.9M barrels||-2.8M barrels|
|Gasoline (weekly change)||-0.3M barrels||-3.3M barrels|
|Distillates (weekly change)||3.9M barrels||1.1M barrels|
Oil inventories continue to come down from an 80-year high, falling for a 5th straight week, down 1.9 million barrels to 477.4 million barrels in the May 29 week. Gasoline inventories, down 0.3 million barrels, are down for a 4th straight week. Bucking the trend are distillates, up 3.9 million barrels for a 2nd straight build.
Oil inventories may be easing but still remain very heavy, reflecting strong domestic output together with continued high levels of imports. WTI, near $60.50, is down about 50 cents following the data.
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.
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.
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