*FYI*
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*T.o.m*
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EIA Petroleum Status Report
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Released on 7/2/08 For wk 6/27 2008 Crude oil inventories (weekly
change) *Actual* *-2.0 M barrels * Definition
The Energy Information Administration (EIA) provides weekly information on
petroleum inventories in the U.S., whether produced here or abroad. The
level of inventories helps determine prices for petroleum products. Why Do
Investors Care?
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.
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