Every Wednesday, the US Energy Information Administration (EIA) reports how much oil is in storage across the country. It is the most closely watched weekly number in the oil market. A private group, the API, publishes its own estimate the evening before.
The textbook reading
- Stocks fall by more than expected, or rise when a fall was expected: usually good for oil.
- Stocks rise by more than expected: usually bad for oil.
Falling stocks suggest that demand is strong or supply is tight. Rising stocks suggest the opposite. Traders also check gasoline and diesel stocks in the same report.