Crude Oil Storage Report - Sept 10

[dan_s]

CRUDE OIL INVENTORY/’000 bbls (Week Ended 9/4/15)

Current: 457,998
Actual Build/(Withdrawal): 2,570
Economist Average Estimate: 873
Previous: 455,428

The accuracy of the EIA's weekly reports is questionable, but the market does react to them.

Many refineries are doing maintenance during the "shoulder season" and they will be switching over to produce less gasoline and more home heating oil. Plus, winter blends of gasoline can contain more butane. Butane is much cheaper than crude oil. This is why gasoline prices drop each year after Labor Day.

Oil prices are up today because the EIA also reported a big drop in U.S. oil production. Details: http://ir.eia.gov/wpsr/overview.pdf