WTI
WTI is a major U.S. crude-oil benchmark quoted in dollars per barrel; dollar pricing does not replace the physical oil balance.
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Why Oil Inventories Matter
Oil inventories connect current physical flows with future availability, but a draw is not automatically bullish and a build is not automatically bearish.
What it is
Inventory changes help reveal whether supply, trade, refinery use, and consumption are leaving more or fewer barrels in storage.
Why it matters
Persistent broad inventory moves can confirm a tightening or loosening balance; one weekly headline can reflect timing, seasonality, weather, maintenance, or location.
Example
A crude draw is stronger evidence when product stocks, refinery activity, exports, and prompt-market structure also point to tightness.
Common mistake
Treating one crude inventory number as a complete oil-demand or price signal.
What to watch
- EIA crude inventories
- Cushing inventories
- product stocks
- refinery utilization
- exports
- futures curve
Key takeaway
Read inventories as part of the physical balance and confirm across locations, products, and market structure.
Adaptive review
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Related cards
Sources
USD Impact Book lesson · U.S. Energy Information Administration · CME Group
Educational and informational purposes only. Not investment advice.