Wednesday, February 24, 2010

API: Crude Oil Inventories Drop

Crude Oil Inventories Drop

The American Petroleum Institute said yesterday that crude oil inventories in the United States dropped by 3.14 million barrels last week to 334.4 million.

Distillate fuels fell by 834,000 barrels to 158.7 million, which inventories for gasoline increased by 1.74 million barrels to 232 million.

Today the Energy Department will release their inventory report as 10:30 a.m. EST.

It'll be interesting to see if the report from the API lines up with the Department of Energy report, as they do move in different direction about 25 percent of the time over the last several years.

The major reason for the discrepancy is the API collects data on a voluntary basis while the DOE does on a required basis.

With consumer sentiment dropping to 46, people are starting to be concerned over the alleged economic recovery, which most really aren't feeling in their pocketbook, and are starting to doubt as being real.

With that in mind, we'll probably find out inventories have in fact risen, as people again hold back on spending and travel.

Crude Oil Inventories Drop

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