Crude Oil Inventory
The Energy Information Administration’s (EIA) gives the weekly update on US oil stocks. It influences the crude price across the globe. It also shows its impact on inflation. The crude oil inventory data is very important for the crude oil trader. As per Indian timing, the report generally comes on every Wednesday.
Indicators That Impact India Stock Market
An increase in crude oil inventories means an increase in US crude oil stocks from last week. If the data is more than expected it implies that there is less demand and it is bearish for crude prices.
A decrease in crude oil inventories means a decrease in US crude oil stocks from last week. If the data is less than expected it implies that there is more demand and it is bullish for crude prices.
In the above chart you can clearly see that on 16th May 2018 there is a decrease in crude oil inventories and on 23rd May there was an increase in crude oil inventories.
Crude Oil Inventories on 16th May 2018 are -1.404M which was better than forecast (-0.763M) and previous (-2.19M).
As we discussed above a decrease in crude oil inventories means that a decrease in US crude oil stocks from last week. This indicates that there is more demand and it is bullish for crude oil prices.
So, in the above chart, you can clearly see that just after the data release crude oil prices showed upside movement.
Crude Oil Inventories on 23rd May 2018 is 5.778M which was lower than forecast (-1.567M) and previous (-1.404M).
As we discussed above that the increase in US crude oil inventories means that the increase in US crude oil stocks from last week. This indicates that there is less demand and it is bearish for crude prices.
So, in the above chart, you can clearly see that just after the data release crude oil prices showed downside movement.