Understanding EIA Inventory Reports
Learn how to read and interpret the weekly EIA petroleum status report - one of the most important data releases for oil traders.
What is the EIA?
The U.S. Energy Information Administration (EIA) is a statistical agency within the U.S. Department of Energy. It collects, analyzes, and publishes energy data that's used by policymakers, businesses, and traders worldwide.
The Weekly Petroleum Status Report
Every Wednesday at 10:30 AM Eastern Time, the EIA releases its Weekly Petroleum Status Report. This is one of the most closely watched data releases in energy markets.
The report provides a snapshot of U.S. oil supply and demand, including:
- Crude oil inventories
- Gasoline and distillate stocks
- Refinery utilization rates
- Oil production and imports
Key Data Points to Watch
Crude Oil Inventories
This is the headline number. It shows how many barrels of crude oil are in storage across the United States.
- Build (inventories increase): Suggests supply exceeds demand; typically bearish for prices
- Draw (inventories decrease): Suggests demand exceeds supply; typically bullish for prices
The market reacts to the difference between the actual number and analyst expectations. A larger-than-expected build or draw causes bigger price moves.
Cushing, Oklahoma Stocks
Cushing is the delivery point for WTI futures contracts. Inventory levels there directly impact WTI pricing.
- Low Cushing stocks can push WTI into backwardation (near-term prices higher than future prices)
- High Cushing stocks can create contango (future prices higher than spot)
Gasoline and Distillate Stocks
- Gasoline stocks matter most during driving season (summer)
- Distillate stocks (including diesel and heating oil) matter in winter and for industrial activity
Refinery Utilization
Shows what percentage of refinery capacity is being used:
- High utilization suggests strong demand for refined products
- Low utilization may indicate weak demand or seasonal maintenance
U.S. Production
Weekly production estimates show how much oil the U.S. is producing. Rising production can offset OPEC cuts, while declining production supports prices.
How to Interpret the Numbers
Seasonal Patterns
Oil inventories follow seasonal patterns:
| Season | Typical Pattern |
|---|---|
| Winter | Builds as demand slows |
| Spring | Maintenance season, variable |
| Summer | Draws as driving increases |
| Fall | Builds before winter |
Always compare current levels to the 5-year average for the same week.
Context Matters
A 5-million-barrel build might seem bearish, but context matters:
- What did analysts expect?
- What time of year is it?
- What happened to refined product stocks?
- Are there any data anomalies or revisions?
Trading the Report
Many traders position themselves ahead of the EIA report based on:
- API data: The American Petroleum Institute releases similar data Tuesday evening, providing a preview
- Analyst estimates: Bloomberg and Reuters publish consensus forecasts
- Technical levels: Key support/resistance levels where prices might react
Oil prices often move sharply in the minutes following the report. Volatility typically subsides within 30-60 minutes as the market digests the data.
Where to Find the Data
You can access EIA data directly from:
- EIA website: www.eia.gov
- Our Market Data page: Summarizes the key weekly numbers
- Financial news: Bloomberg, Reuters, and CNBC report on releases
Beyond Weekly Data
The EIA also publishes:
- Monthly reports: More detailed production and consumption data
- Short-Term Energy Outlook: Monthly price and supply forecasts
- Annual Energy Outlook: Long-term projections
Key Takeaways
- The EIA Weekly Petroleum Status Report releases every Wednesday at 10:30 AM ET
- Crude oil inventory changes are the most watched number
- Compare actual results to analyst expectations and seasonal norms
- Cushing stocks are particularly important for WTI pricing
- The API report on Tuesday often previews the EIA data
- Context and market expectations matter as much as the raw numbers