Oil Prices Tumbled As Oil Stockpiles Remained Unchanged

The Prices of crude oil sharply declined today as the recent partial EIA report presents the oil stockpiles remained unchanged in the U.S. The full petroleum and oil weekly report wasn’t published yet by the Energy Information Administration due to Hurricane. During last week U.S stockpiles remained virtually unchanged: the total U.S oil and petroleum stockpiles edged down by 0.1 million bl; conversely, crude oil stockpiles declined by 2 million bl. Currently, the price of oil is falling.  

Here is a weekly update for the week ending on October 26th 2012 of the U.S oil and petroleum market:

Crude Oil Stockpiles

For the week ending on October 26th, U.S. Petroleum and crude oil stockpiles edged down by 0.1 million barrels and reached 1,793.2 million barrels. The current oil stockpiles are also higher than the quota as of last year: the current crude oil stockpiles are 32.5 million barrels above oil stockpiles levels of the parallel week in 2011.

U.S. Ending Stocks of crude oil decreased by 2 million barrels and reached 1,068 million barrels.

The U.S. Ending Stocks of Total Gasoline rose by 0.47% compared with last week’s stocks; it reached 199.5 million barrels.

In the chart below are the changes of petroleum and oil stockpiles and WTI crude oil price in recent years. During the last couple of years the lagged linear correlation between WTI oil price and current oil stockpiles was -0.188. This relation suggests, assuming all things equal, oil prices may further edge up during the upcoming week.

Weekly U.S. Ending Stocks Crude Oil and WTI spot oil price 2012 November 2

Propane Stocks

Propane stocks decreased by 528 thousand barrels and reached 73,947 thousand barrels.

A detailed analysis of oil prices for the week ending on October 26th is herein.

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