Release Explanation: This is the DOE (Department of Energy) Crude Oil Inventory, EIA (Energy Information Administration) Weekly Oil Inventory. It measures changes in crude oil production, refinery inputs and utilization, production by product; current inventory level of crude and related products as well as an estimate of how many days of supply is currently available. Increasing or decreasing inventory figures leads to an adjustment of price action that in time will spread throughout the economy. Currently, it is estimated that for every one percent of GDP growth, oil consumption increases by one quarter to one third of a percent, so oil inventories must be able to increase along with the economy or another gasoline shortage may occur. It is also worth noting that at an average price of $75.00 a barrel, the U.S. spends one billion dollars a day on crude. Trade Desk Thoughts: U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased 3.3 million barrels from the previous week. At 356.6 million barrels, U.S. crude oil inventories are above the upper limit of the average range for this time of year.
Demand for total products declined sharply compared to the same period a year ago, although gasoline demand improved" said Matthew Carniol, chief currency strategist at TheLFB-forex.com. "The slight improvement in demand for gasoline from a year ago could be a positive for oil prices."
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