EIA inventory report

In the week ended December 22, 2017, US crude oil inventories were 431.9 MMbbls (million barrels), a fall of 4.6 MMbbls compared to the previous week. The figure was based on the EIA’s (U.S. Energy Information Administration) report on December 28, 2017. That same day, US crude oil prices rose 0.3%.

How Much Fall in Inventories Could Support Oil This Week?

Inventories spread

The spread between US oil inventories and their five-year average, or the inventories spread, is important for oil prices. Usually, oil prices move opposite to the inventories spread. That means a fall in the inventories spread could help oil (UCO) (BNO) prices rise.

In the week ended December 22, 2017, the inventories spread was 9.2%, or 1.5 percentage points lower than the previous week. After the inventory data on December 28, 2017, US crude oil (OIIL) (USL) (DBO) futures rose 1% to date.

What oil traders should expect

In the week ended December 29, 2017, US crude oil inventories would have to fall 6.9 MMbbls in order for the inventories spread to narrow and support oil prices. On January 4, 2018, the EIA will release its oil inventory report. In the next part, we’ll take a look at the US crude oil futures spread.

Latest articles

Investors have been holding their breath for a Fed rate cut for a while now. But are they prepared in the event that that doesn't happen?

Innovative Industrial Properties (IIPR) continued to slump on July 22. The stock lost almost 6.8% of its value on the day.

22 Jul

Why AT&T Stock Is Down 2.2% Today

WRITTEN BY Ambrish Shah

AT&T stock (T) was trading at $32.14 with a 2.0% loss for the day. Earlier today, it posted a low of $32.08. Is the stock overvalued right now?

The Walt Disney Company’s (DIS) superhero film Avengers: Endgame has finally surpassed the record set by James Cameron’s Avatar.

22 Jul

Why Durect Corporation Is Soaring Today

WRITTEN BY Margaret Patrick

On July 22, Durect Corporation (DRRX) entered into a collaboration with HIV leader Gilead Sciences (GILD).

Pure Alpha, the flagship fund of Ray Dalio’s Bridgewater Associates, fell 4.9% in the first half, the Financial Times reported.