scott146

Crude Inventories Report: The More People Watch It, The Less Useful It Becomes

This phenomenon is a confirmation of the efficient markets hypothesis as the trading value of this information has gone to zero as the amount of attention paid to the data increased.

Although this information is now useless as a trading indicator, it does tell us that crude prices have become disconnected from US inventories. According to the EIA's data, crude inventories have been at the top of their historical range for more than a year...so the price of crude reflects future event risk more than it does current supply concerns.