29 Nov

Will the Inventories Spread Impact US Crude Oil?

WRITTEN BY Rabindra Samanta

Inventory data

US commercial crude oil inventories fell by 1.9 MMbbls (million barrels) in the week ending November 17, 2017. The fall was 0.5 MMbbls more than the market’s expected fall. In the same week, US crude oil stockpiles were at 457.1 MMbbls. The EIA (U.S. Energy Information Administration) released the data on November 22. On that day, US crude oil prices rose 2.1%.

Will the Inventories Spread Impact US Crude Oil?

Inventories and their five-year average

The spread between US commercial crude oil inventories and their five-year average or the “inventories spread” might be a concern for oil (UCO) (BNO) prices. If the inventories spread increases, we could see a fall in oil prices and vice versa.

In the week ending November 17, the inventories spread was 14.3%—50 basis points less than the week ending November 10. US crude oil prices fell 0.1% from November 22, 2017, to date.


US commercial crude oil stockpiles could fall by 2.5 MMbbls—based on market expectations. However, the American Petroleum Institute reported a rise of ~1.8 MMbbls in oil inventories. If the EIA reports a similar rise, it would exceed the ~0.6 MMbbls rise and the inventories spread would remain at a constant level. So, a possible rise in the inventories spread might prevent oil (DBO) (OIIL) (USL) prices from making a new 2017 high. The EIA will release its oil inventory data on November 29, 2017.

Latest articles

On Tuesday, Tesla (TSLA) cut the prices of its vehicles to standardize its global car line-up, according to Reuters.

Yesterday, PayPal (PYPL) announced that it would expand Xoom, which is its international money transfer service, to 32 markets in Europe.

Visa stock has risen about 37% and has outperformed the S&P 500 Index so far in 2019.

16 Jul

What to Expect from Skechers’s Q2 Results

WRITTEN BY Sharon Bailey

Skechers (SKX) is set to declare its results for the second quarter after the markets close on July 18. Here's what you should know.

On Tuesday, Canadian Pacific Railway (CP) reported strong second-quarter earnings. The company's top and bottom lines touched a record mark.

16 Jul

What to Expect from Crown Castle's Q2 Results

WRITTEN BY Sushree Mohanty

Crown Castle International (CCI) is scheduled to announce its second-quarter earnings results on Wednesday after the market closes.