Wednesday, September 23, 2009

Crude Inventories Up, Price Down

WSJ details:

Crude oil futures prices sold off sharply early Wednesday, dropping below $69 a barrel after U.S. weekly data showed rising inventories and a sharp drop in demand. Light, sweet crude oil for November delivery had been down about $1.25 a barrel ahead of the data release Wednesday, under pressure from strength in the dollar.

But crude dropped swiftly through the $70 and $69 levels after the Energy Information Administration reported a 2.8-million-barrel rise in crude oil inventories for the week ended Sept. 18. Analysts surveyed by Dow Jones Newswires had expected crude stocks to drop by 1.5 million barrels.

And the importance of stocks and the price (both figures below are YoY changes)...



Source: EIA