Crude Oil Inventories
Crude Oil Inventories (US)
A Surprise Buildup in Inventories Last Week
Starts Tuesday, August 21, 2018 at 17:40
Updated Tuesday, August 21, 2018
US Oil inventories have been pretty volatile with drawdowns and buildups from week to week, although the buildup last week caught Oil and CAD traders by mistake. Inventories posted a surprising buildup of 6.8 million barrels, while expectations were that inventories would decrease by around 2.6 million barrels. As a result, USD/CAD ended the day around 70 pips higher while US Crude Oil ended the day more than two cents lower. It will be interesting to see how much Oil inventories will affect these two instruments if there is another major deviation, but one thing is certain, CAD and Oil traders will be more cautious this time.
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About Crude Oil Inventories (US)
The Energy Information Administration (EIA) is an independent statistics bureau, tasked with the periodic measure of crude oil, natural gas, coal, and electricity supplies. The EIA Crude Oil stocks report quantifies the weekly change in the inventory of crude oil and derivative products. It is denominated in barrels and compared to the previous week’s report as well as industry estimates.EIA inventories have a significant influence upon the WTI crude oil markets, producing instantaneous volatility upon public release. While pricing of crude oil is denominated in U.S. dollars around the globe, the ongoing supply/demand relationship is the primary determinant of pricing. EIA inventories have a considerable impact upon the Canadian dollar and other commodity-driven currencies.WTI crude futures, as well as USOIL and UKOIL are particularly sensitive to the timing of the report. Investors look to the EIA inventories for guidance in forecasting the current supply/demand environment facing crude oil and the energy sector as a whole.