Econoday Report: EIA Petroleum Status Report 2, 2005

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2005 U.S. Economic Events & Analysis

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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 11/2/05 For wk 10/28 2005

Crude oil inventories (weekly change)
Actual	2.7M barrels

Highlights
Crude oil stocks rose 2.7 million barrels to 319.1 million in the Oct. 28 week. Gasoline stocks were higher again, up 1.0 million barrels to 196.9 million, but distillate stocks once again declined, down 0.2 million to 120.9 million with a decline in heating oil more than offsetting a rise diesel fuel.

Refineries continue to come back on line, operating at 82.5% of capacity in the week vs. 80.7% the week before. The Energy Information Administration said demand continues to lag, down 1.7% year-on-year.

The rise in crude and gasoline stocks along with the rise in capacity and the decline in demand all point to downward pressure on oil prices.

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

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