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How to read US crude oil inventory release data ?

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Nick H.    9,744

Is it not explained in the two paragraphs underneath the statistic?

Quote

The Energy Information Administration's (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation. 

If the increase in crude inventories is more than expected, it implies weaker demand and is bearish for crude prices. The same can be said if a decline in inventories is less than expected. 
If the increase in crude is less than expected, it implies greater demand and is bullish for crude prices. The same can be said if a decline in inventories is more than expected.

So I'm taking that to mean that they have 1.566M barrels, whereas they previously had 0.867M barrels.

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Deep_Level_Shark    6


they say "the weekly change in the number of barrels of commercial crude oil held by US firms."

 

Q1 : my confusion is  this 1.566M barrels is the weekly change OR   this is the total number of barrels (absolute) reserved in US inventory ?

 

Q2:   my another confusion is .. why its shown as 1.566M barrels  in RED ...  Is it decreased ? then there should be a negative sign like other data there.

 

 

Edited by Deep_Level_Shark

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+Mirumir    5,635

I've been following these alerts for more than a decade.

 

It does show a weekly change in inventories, not the total held in reserves.

 

A red number means the change for the week was worse then expected.

 

Actual

1.566M

Forecast

-0.435M

Previous

0.867M

 

Means that they previously thought the inventory would've decreased by 0.435M, instead it grew by 1.566M indicating weak demand.

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Nick H.    9,744

Actually you're right. Now I think about it, 1.566M barrels isn't really a whole of a lot if it were the actual inventory. :laugh: My mistake!

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Deep_Level_Shark    6
21 minutes ago, Mirumir said:

A red number means the change for the week was worse then expected.

 

I'm still not okay with these colors ....  what  does RED and GREEN means here ? Is it just severity ?

 

Look at data there :

Mar 15, 2017

20:00

-0.237M

3.713M

8.209M

 

what does -0.237 mean in GREEN here ? ( its negative but in green !! ..confusing)

 

21 minutes ago, Mirumir said:

Means that they previously thought the inventory would've decreased by 0.435M, instead it grew by 1.566M indicating week demand.

Is that a typo ?  you mean week  or weak here ?

Edited by Deep_Level_Shark

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+Mirumir    5,635
31 minutes ago, Deep_Level_Shark said:

okay...  this RED has nothing to do with negative/positive ?  normally in numbers RED means negative change ...and green means positive change.

I was confused to see that  colour here.

You are correct. A red number means bad news for the investors, a sell signal. A green number means a positive, a buy signal.

 

Example 2.

 

Mar 29, 2017 

 

Actual

0.867M (black or green font)

Forecast

1.357M

 

It was expected that the inventories would grew by 1.357M, but the actual net change number turned out to be less than the forecasted amount (0.867M<1.357M) indicating a stronger demand for the asset.

 

P.S. Just wanted to add. Stay away from trading the futures and the derivatives. You can lose a lot more than you initially put down.

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+Mirumir    5,635
23 minutes ago, Deep_Level_Shark said:

Is that a typo ?  you mean week  or weak here ?

Yeah, sorry and thanks, I meant to say "weak".

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Deep_Level_Shark    6

it was very much helpful ...thanks

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