Today's Report (12/29/2021)
Crude inventories fell by 3.6 million barrels in the last week to 420 million barrels, compared to a 3.1 million-barrel drop predicted by analysts.
The EIA reported that crude stocks at the Cushing, Oklahoma, delivery hub increased by 1.1 million barrels in the previous week.
Refinery crude runs decreased by 115,000 barrels per day, while refinery utilization rates increased by 0.1 percentage point, according to the report.
Gasoline stocks in the United States fell by 1.5 million barrels last week to 222.66 million barrels, falling short of analysts' expectations for a 0.5 million-barrel increase.
The EIA data showed that distillate stockpiles, which include diesel and heating oil, fell by 1.7 million barrels in the week to 122.43 million barrels, compared to expectations for a 0.2 million-barrel increase.
According to the EIA, net US crude imports increased by 515,000 barrels per day last week.
Following the release, WTI Crude Oil Saw some movement towards the upside.
What Is It?
Provides weekly information on petroleum inventories in the US, whether produced here or abroad. It provides a weekly total of inventories either added or reduced.
What Are The Fundamental Effects?
Energy prices generally rise during periods of economic expansion and fall during recessions. They’re certainly subject to inflationary pressures. Rising prices can impact pricing for products and services. These include heavy industry, transportation, and even retail. It directly affects consumer prices for a number of products.
How Does It Affect The Markets?
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. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much.
Some More Insight
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.