Energy Inventories Change At A More Normal Pace

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 |  Includes: UGA, USO
by: Bespoke Investment Group

After several weeks during which crude oil inventories saw record declines, changes in stockpiles over the last two weeks have returned to a more normal pace. According to the Department of Energy, crude oil inventories declined 1.3 million barrels in the last week, which was slightly less than the average forecast of a decline of 1.5 million barrels that traders were expecting. Even after this week's decline, crude oil inventories remain well above their historical average for the current time of year.

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With respect to gasoline, traders were expecting stockpiles to fall by half a million barrels this week. The actual change, however, was a gain of 135K barrels. What is noteworthy about this week's build in inventories is the fact that this is a time of year when we typically see inventories decline. As a result, inventories are now further above their historical average for the current time of year than at any other point since January.

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