Here are the latest details from the U.S. Energy Information Administration regarding diesel fuel, heating oil, gasoline, and many more, for the week ending February 17th.
On Friday, the price of U.S. West Texas Intermediate (WTI) crude oil rose to $76.11, representing a gain of over 2.5% within 24 hours of the release of the EIA report. The U.S. crude oil refinery inputs averaged 15.0 million barrels per day, which was 17 thousand barrels per day less than the previous week’s average, with refineries working at 85.9% of their capacity.
The recent decrease in crude oil refinery inputs, combined with an increase in gasoline and distillate fuel production, has the potential to result in a decrease in crude oil inventories. This, in turn, could potentially increase oil prices.
Gasoline production increased last week, averaging 9.4 million barrels/day. Distillate fuel production increased, averaging 4.7 million barrels per day. U.S. crude oil imports averaged 6.3 million barrels per day last week, 94,000 barrels per day higher than the previous week, with imports averaging approx. 6.7 million barrels/day.
Additionally, the recent slight increase in crude oil imports could contribute to downward pressure on oil prices, as it suggests that there could be higher supply levels in the market.
Recent reports indicate that crude oil prices have increased due to Russia's plans to reduce its oil exports further beginning in March. According to a recent Reuters report that cited unnamed sources, Russia is considering cutting its oil exports from western ports by up to 25% in March.
This is in addition to the already announced production cut of 500,000 barrels per day in March. Russia is a significant supplier of oil to Asian markets.
Don’t Miss this week's EIA Oil Report
- You can use our free economic calendar to prepare for data releases
- Start trading market volatility around macroeconomic data releases by opening a live account with CAPEX.com. Alternatively, you can practise trading with a CAPEX.com demo account.
- Visit CAPEX Academy to learn more about macroeconomic indicators and events.
An Introduction to EIA Crude Oil Inventories
There is no underestimating the importance of oil prices on the underlying health of the economy. As oil prices move up or down, inflation follows in the same direction. Energy from oil is used for everything from heat to manufacturing to transportation, therefore if oil costs rise, so do the costs of many consumer products and the overall cost of living. In times of high oil prices, the Federal Reserve (Fed) may even adjust interest rates to prevent further inflation. This is just one sign of the fundamental interrelation between oil and the overall U.S. economy.
Even with the rise of algorithmic and quantitative trading, the basic principle of supply and demand is always key to understanding the movement of oil prices. When monitoring supply, energy traders pay particular attention to the weekly U.S. Energy Information Administration (EIA) Petroleum Status Report.
What is the EIA Crude Oil Inventories report?
Crude oil inventories are the amount of crude oil that is stored in commercial facilities in a country. They are typically measured in barrels.
Crude oil inventories are an important indicator of the supply and demand for oil. They can be used to predict future oil prices and to help policymakers make decisions about energy policy.
The EIA Crude Oil Inventories report is a weekly publication that presents the change in crude oil stockpiles in the United States. It covers data from the previous week, which includes information on crude oil production, imports, and refinery utilization rates.
How to Read the Report
The EIA Crude Oil Inventories report provides several key data points, including:
Total commercial crude oil inventories
The overall level of crude oil stocks held by commercial firms in the United States.
Weekly change
The net increase or decrease in crude oil inventories from the previous week.
Regional breakdown
The distribution of crude oil inventories across various regions in the United States.
Days of supply
The number of days it would take to consume the current inventory at the current refinery utilization rate.
An increase in crude oil inventories typically indicates weak demand or an oversupply in the market, whereas a decrease in inventories suggests strong demand or tight supply conditions. However, many advanced oil traders maintain an in-depth knowledge of political issues in oil-producing regions, as well as a strong technical understanding of the refining process.
Here are some guides and analyses that might help you understand the Oil price movement:
Why are Crude Oil Inventories important for traders and investors?
The EIA Crude Oil Inventories report plays a vital role in influencing crude oil prices, as it offers insight into the balance between supply and demand in the U.S. market. The data can impact oil prices globally, as the United States is one of the world’s largest oil consumers and producers.
Market participants, such as traders, investors, and analysts, closely monitor the report to identify trends and make informed decisions on oil-related investments or trades.
When crude oil inventories are high, it indicates that there is a lot of oil available and that prices may be under pressure. When crude oil inventories are low, it indicates that there is not a lot of oil available that prices may be under upward pressure.
Who publishes the Crude Oil Inventories data?
The EIA Crude Oil Inventories report is sourced directly from the U.S. Energy Information Administration (EIA).
The EIA is a statistical and analytical agency within the U.S. Department of Energy that provides independent and impartial energy information to support policymaking, market analysis, and public understanding of energy-related issues.
The data is collected through surveys of oil companies, refineries, and storage facilities.
In addition to the Weekly Petroleum Status Report, the EIA also releases other energy-related reports, e.g., the Weekly Natural Gas Storage Report, Weekly Coal Production Report, and Gasoline and Diesel Fuel Updates.
According to the EIA Information Quality Guidelines, the federal agency ensures the objectivity, utility, and integrity of the information that it releases. It also aims for transparency and reproducibility for influential information. The standards make the Crude Oil Inventories report a reliable resource for oil traders to estimate Oil prices and make trading decisions.
When is the Crude Oil Inventories data released?
The EIA Crude Oil Inventories report is published weekly, typically on Wednesdays at 10:30 a.m. Eastern Time (ET). However, if there is a U.S. federal holiday on Monday, the report is released on Thursdays at 11:00 a.m. ET.
The report is available on the EIA’s official website (www.eia.gov) and can be accessed for free. In addition to the main report, the EIA also publishes historical data and supplementary information, allowing for in-depth analysis and comparison over time.
How to Trade and Invest in Oil with CAPEX.com?
- Research your markets – you can get direct exposure to WTI and BRENT price movements through futures contracts and Oil ETFs, or indirect exposure through shares of Oil sector companies and energy ETFs.
- Define your strategy – trading lets you speculate on the price movement; dealing lets you take direct ownership of the stocks and ETFs.
- Take your position – create an account with us to trade and invest in Oil.