EIA inventory data

The U.S. Energy Information Administration (or EIA) reports weekly figures on crude oil inventories every Wednesday. The EIA crude inventory report also provides data on inventories of distillates and gasoline, which are refined products of crude oil.

Why energy investors closely monitor the EIA crude inventory report

Crude oil inventory levels change based on demand and supply trends. Demand is primarily from refineries that process crude into refined products like gasoline and heating oil. Supply comes from domestic production and imports from other countries.

Inventories increase when demand is lower and decrease when demand is higher than supplies for the week. Every week, analysts anticipate an increase or decrease in crude inventories based on demand and supply expectations that week.

Analysts had expected an increase of 700,000 barrels in crude inventories last week. We’ll discuss actual changes in inventories later in this series.

The effect of price and profitability

The difference between actual and expected changes in inventories affect crude prices. We’ll cover recent crude price movements in a later part of this series. Crude oil prices directly affect earnings for major oil producers such as Continental Resources (CLR), Occidental Petroleum (OXY), Chevron Corporation (CVX), and ConocoPhillips (COP). These companies are all major components of energy ETFs such as the Energy Select Sector SPDR (XLE).

Cushing inventories

Another important figure the EIA reports is the level of crude oil inventories at Cushing, Oklahoma, a major inland oil hub in the United States. It’s the pricing point for the North American benchmark WTI (West Texas Intermediate) crude.

Inventory levels at Cushing reflect the pace at which the increasing US oil supply is moving from major inland production areas such as the Bakken in North Dakota and the Permian in west Texas to the major refining hub situated on the Gulf Coast.

A buildup of inventories at Cushing can pressure the price of WTI crude downward and vice versa.

In the following parts of this series, we’ll look at the latest crude inventory data in detail.

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.