The influence of American oil stocks

When trading in oil online, you will need to use certain economic and fundamental information to achieve a precise analysis of the market situation and particularly be capable of anticipating the future movements of the price per barrel of crude oil. Notably if you trade in WTI, the analysis of the American oil stocks should not be neglected as it will provide precious information for taking short term positions that can be adjusted as necessary over the long term.

With the value of the American Dollar and the production levels, it is in fact one of the most influential elements on the price of crude oil. We will look closely here and now at the precise influence of these stocks.


What are the American oil stocks?

The American oil stock figures are data that is updated each week by the Energy Information Agency of the United States. The stocks referred to here are those that can be found in the American companies that use this commodity and therefore make major purchases.

You can find out the level of these stocks each week using the economic calendar, as well as the stocks of petrol and distillates. It is the API that is responsible for this weekly publication and you can access an economic calendar from any professional online trading platform.


How do the oil stocks work in the United States?

The American oil stock figures are completed in a weekly basis, by the IEA, International Energy Agency, an autonomous intergovernmental organisation. This organisation details the crude oil stocks accumulated by American companies.

It is another organisation, the API or American Petroleum Institute, that is responsible for the official publication of oil stocks figures, completed every week, generally the Wednesday or Thursday, at the same time as those for the stocks of fuel and distillates. The figures for the American oil stocks are entered into the economic calendar that you can find online but which is also available through all the CFD brokers.


The influence of American oil stocks on the price per barrel:

The publication of the American oil stock figures has a major importance for the analysis of the petroleum market and the anticipation of price movements. In fact, the businesses accumulate their oil stocks in accordance with their requirements. It is therefore clear that these stocks diminish according to economic activity and therefore demand increases. On the contrary, stocks that increase are often the sign of a weak demand.

Moreover, when the stock volume falls, businesses tend to purchase more oil in order to replenish their stocks rapidly which may often lead to a rise in the price particularly over the short term. To the contrary, major stocks encourage buyers to reduce their orders so leading to a fall in the price per barrel.


How to use the American oil stock figures to trade in oil?

As we have just detailed, the oil stock figures directly influence the price of crude oil. But it is important to know how to use this indicator wisely. In fact, the stock figures that are published do not enable you to know how the price per barrel may change. 

Expert analysts of the oil market actually issue figures each week concerning the oil stocks. Therefore, when these figures are correct there is no real impact on the oil price. But when the true stock figures are significantly higher or lower than the experts’ calculations this can lead to a rise or fall in the price.

Take position using American oil stock figures:

The weekly publication of American oil stocks is an excellent entry point onto the oil market. To take position on the rise or on the fall, register now with a renowned and accredited broker.

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