EIA Data Changes: Impact on Oil Inventories

EIA Data Changes: Impact on Oil Inventories: Tyler Richey Quoted in Morningstar

Why the U.S. government is changing the way it collects data on the oil market

It appears that previous data collection processes had “‘loopholes’. Which allowed certain condensates and ‘other oils’ to not be reported in inventories. But now will require them to report in total oil inventory figures,” he said.

Looking through the changes to the EIA’s data collection process, Tyler Richey, co-editor at Sevens Report Research, said it was “not very clear exactly how the data will be affected.”

The simplest takeaway is that the next effect of this change should result in oil inventories being higher than they previously were, said Richey.

The EIA in March explained the difference in its estimates of supply. As disposition had increased in its U.S. crude-oil balances it was studying the growing difference. It identified ways in which it has been “overstating disposition and understating supply.”

Also, click here to view the full MarketWatch article published on Morningstar on November 15th, 2023. However, to see the Sevens Report’s full comments on the current market environment sign up here.

Oil Inventories

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