Drowning in Crude
Source: Seeking Alpha, Bespoke Investment Group (10/27/10)
"Department of Energy's report showed an increase of 5.007 million barrels."
Below we highlight the weekly stockpiles of crude oil, gasoline, and distillates so far this year and compare them to their historical average. As shown in the charts, while stockpiles have been above average all year for all three, distillates and gasoline have been following their typical seasonal patterns. Crude oil, however, is a different story. As shown, not only have inventory levels of crude been above average all year, but they haven't been following the seasonal script either. While they should have been declining over the last several months, stockpiles have actually remained relatively unchanged. With today's large build, crude oil stockpiles are now at their highest point of 2010, and at a higher point relative to the historical average than at any other point this year.