EIA Crude Oil Inventory – An Economic Indicator to Measure Future Inflation

By Advisorymandi
28-June-2018 8:23:27 AM
EIA Crude Oil Inventory – An Economic Indicator to Measure Future Inflation


Most of us are familiar with the importance of economic indicators since these are the source of crucial information regarding the global economy and financial markets. Many investors and traders who have invested in the stock market, commodity market, or any other financial market realize the importance released data and their several influences on a country’s economy and financial markets. By released data and major economic announcements we mean the important economic indicators like OPEC Monthly Report, Building Permits, Trade Balance, Core Retail Sales, GDP, Nonfarm Payrolls, PPI, Unemployment Data, Crude Oil Inventory, and many others which put an impact on a country’s economy and global market.

Investors who have invested in the stock market for a long time understand the key factors impacting market volatility and economic health, and inflation. Crude Oil Prices and Currency are two major key factors which can turn entire economy upside down.

One such indicator to illustrate the economy’s health is EIA Crude Oil Inventory. It is a weekly petroleum status report published by the Energy Information Administration on every Wednesday. The EIA is an agency within the U.S. Department of Energy. It gives the full details of crude-oil reserve that the United States holds along with the amount of crude it produces both domestically and abroad.

The EIA Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil and the level of crude oil inventories influence the price of refined petroleum products such as gasoline, diesel fuel, and heating oil, which by the way can have an impact on the future inflation.

For example, If the increase in crude inventories is more than expected then it implies weaker demand and is bearish for crude prices, however, if the increase in crude inventories is less than expected then it implies strong demand and is bullish for crude prices.


Final Thoughts: –
Investment analysts and financial advisors go through the weekly report of EIA Crude Oil Inventory carefully and use this data to predict the energy prices and production levels. Not just advisors and analysts but also the investors and traders can have access to the data on EIA crude oil inventory along with other economic indicators through the use of the live economic calendar. By going through the economic calendar for EIA Crude Oil reports, one can understand the impact of crude oil prices on country’s economy and future inflation to protect his/her investment from various risks.

If you have any query or would like to add something then you can message in the comment section below.


Note: All information & data provided in this article is for the educational purpose as well as to give general information on the finance & economy, not to provide any professional advice or service. Views & opinions are not biased against the company and do not affect any official policy or any other agency, an organization within the content.

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Author: Advisorymandi

AdvisoryMandi is India's most trusted Stock Market Advisory marketplace covers NSE, BSE, MCX & NCDEX. Invest with confidence and harness the power of AdvisoryMandi to make smarter investment decisions in Stocks, Indices, Commodities, Forex & IPO.

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Kavita Dua
Kavita Dua
1 year 11 months ago

If Inventories rise, crude will fall and vice versa. The Wednesday EIA reports the level of inventories of crude oil in the United States. It offers a good opportunity to execute profitable trades.