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Low Oil Inventories, Means What?



October 25, 2011 – Comments (0) | RELATED TICKERS: VLO , USO , BNO

Understanding the big picture of the oil industry can be crucial to your successful investment. There are many elements within the oil industry, and with our volatile markets, learning how each is connected is important. Recently there have been lower than average inventories, what does this mean to refiners and oil pricesJon Ogg explains the other elements of the industry that will be seeing effects.

"Gasoline inventories fell by 3.324 million barrels to 206.271 million barrels, worse than the drop of 1.7 million expected by Dow JOnes.  Distillates fell by 4.266 million barrels to 149.739 million barrels, also worse than the 1.7 million draw expected by Dow Jones.

The other issue to consider is a lower refining capacity.  Refineries in the last week were shown to be at 83.1%.  While some slowing is routine, this is down from 84.2% a week earlier and worse than the 83.8% expected by Dow Jones."


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