Markets Home

Active trader

Hear from active traders about their experience adding CME Group futures and options on futures to their portfolio.

Find a broker

Search our directory for a broker that fits your needs.

CREATE A CMEGROUP.COM ACCOUNT:

MORE FEATURES, MORE INSIGHTS

Get quick access to tools and premium content, or customize a portfolio and set alerts to follow the market.
Market Data Home

Real-time market data

Stream live futures and options market data directly from CME Group.

E-quotes application

Access real-time data, charts, analytics and news from anywhere at anytime.

CME DATAMINE:

THE SOURCE FOR HISTORICAL DATA

Explore historical market data straight from the source to help refine your trading strategies.
Services Home

Uncleared margin rules

Understand how CME Group can help you navigate new initial margin regulatory and reporting requirements.

Calculate margin 

Evaluate your cleared margin requirements using our interactive margin calculator.
Education Home

Now live: ESG solutions

Manage the risk associated with renewable energies, environmental change and sustainable investments.

Create a CMEGroup.com Account: More features, more insights

Get quick access to premium educational content, including expert-led webinars, a real-time trading simulator, and more.
      Course Overview
      • What is Gross Domestic Product (GDP)?
      • About the Retail Sales Report
      • What is the Non-Farm Payroll Report?
      • Understanding Consumer Price Index and Producer Price Index
      • Understanding U.S. Housing Data
      • What is the European Central Bank?
      • Understanding the FOMC Report
      • Understanding the Oil Data Report
      • The Importance of Consumer Confidence Surveys
      Learn about Key Economic Events
      You completed this course.Get Completion Certificate

      Understanding the Oil Data Report

        • Also available in

        • 简体中文
        • 한국어

      Video not supported!

      There is no underestimating the importance of oil prices on the underlying health of the economy. As oil prices move up or down, inflation follows in the same direction. Energy from oil is used for everything from heat to manufacturing to transportation, therefore if oil costs rise, so do the costs of many consumer products and the overall cost of living. In times of high oil prices, the Federal Reserve (Fed) may even adjust interest rates to prevent further inflation. This is just one sign of the fundamental interrelation between oil and the overall U.S. economy.

      Even with the rise of algorithmic and quantitative trading, the basic principle of supply and demand is always key to understanding the movement of oil prices. When monitoring supply, energy traders pay particular attention to the weekly U.S. Energy Information Administration (EIA) Petroleum Status Report, which reports on U.S. crude oil inventories, both domestically and abroad. This report is released by EIA each Wednesday at 10:30 a.m. Eastern Time.

      Traders also consult the American Petroleum Institute (API) Weekly Statistical Bulletin Report, released on Tuesdays at 4:30 p.m. Eastern Time. This report covers U.S. Crude inventories and data related to refinery operations, as well as the production, imports and inventories of the four major petroleum products: motor gasoline, kerosene jet fuel, distillate fuel oil and residual fuel oil.

      Additionally, the weekly Baker Hughes Rig Count, which reports on total U.S. oil rigs, may provide an indication of future oil production and inventories in the U.S.

      While these weekly releases provide essential data points for understanding current U.S. oil supplies, traders must also pay attention to international politics and policy. In the Middle East, the Organization of Petroleum Exporting Countries (OPEC), regularly meets to exercise control over production quotas and oil prices. Since OPEC controls 60% of the world’s oil, OPEC policy changes can heavily impact global oil supply and demand.

      One major difficulty when analysing the outlook for energy markets is that supply and demand are impacted by many diverse factors, including geo-political tensions, seasonal elements such as winter heat and summer driving, refinery outages and world events both in the U.S. and abroad.

      For this reason, many successful oil traders maintain an in-depth knowledge of political issues in oil-producing regions, as well as a strong technical understanding of the refining process. On the other hand, inventory updates by the API and the EIA requires considerably less analysis. In essence, if the EIA number shows a higher-than-expected increase in crude supply inventories, it implies greater supply strength and can be bearish for crude prices.  Likewise, a reported weaker-than-expected supply can imply a stronger demand. 

      There are a number of factors to think about when trading U.S. oil data but with a little insight and thorough preparation, these markets provide numerous opportunities for traders. 


      Test your knowledge

      Related Courses
      /content/cmegroup/en/education/courses/learn-about-key-economic-events/understanding-the-oil-data-report
      • {{ course.name }}
      Previous Lesson
      Next Lesson
      Course Overview
      Get Completion Certificate
      Previous Lesson Next Lesson
      • YouTube
      • Twitter
      • Facebook
      • LinkedIn
      • Instagram
      • Rss

      CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). 
      Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX and COMEX.

      © 2021 CME Group Inc. All rights reserved.

      Disclaimer  |  Privacy Policy  |  Cookie Policy  |  Terms of Use  |  Data Terms of Use  |  Modern Slavery Act Transparency Statement  |  Report a Security Concern