Slide 19 of 26
Notes:
- Like those for other petroleum products, gasoline inventories have been running below normal. As of the latest weekly data, stocks are about 5% lower than the low end of the normal range for this time of year.
- Behind all of the low product inventories are low crude oil inventories. Recall that the crude market tightened in 1999 when OPEC cut back production. Demand was greater than supply and inventories were used to make up the difference. They have not yet recovered.
- Crude oil inventories are running about 7% below the low end of the normal range for this time of year.
- After last week’s very large stock draw, it appears inventories are the lowest that they have been since December 1975.
- The U.S. inventory data will be an important price barometer to watch. Low inventories leave little cushion to absorb unexpected events such as refinery or logistical disruptions.
