This week's report from the Department of Energy regarding energy inventories showed once again that crude oil stocks are rapidly declining. While traders were expecting inventories to decline by 2 million barrels, the actual decline was more than 6.9 million barrels. Over the last three weeks, crude oil inventories have now declined by 27.1 million barrels, which is the largest three week decline in at least 30 years. Over that period, the amount of above average inventory has declined by more than 40%.
Unlike crude oil, gasoline inventories actually increased this week. While traders were expecting inventories to decline by 1.5 million barrels, actual inventories increased by 3.055 million barrels. This comes at a time of year when inventories are typically in decline.