Within the last year, the weekly Petroleum Inventory Report (due out today at 10:30) has weighed on traders' minds more and more due to rising energy prices. Below we compare the performance of crude oil ($/barrel) with the rise or fall in crude oil inventories vs analyst estimates. The overall trend line points to a fall in crude prices when inventories are higher than expected, but the correlation between the two is minimal.
When comparing the percent change in the DJIA (10:30 to close) with the inventory report, an even weaker correlation exists. One may think that higher than expected inventories would be a drag on crude and a boost for stocks, however the chart below proves otherwise.
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