“Days supply” is a measure which compares stock levels to current demand… Stock levels divided by daily demand gives us a sense of how tight or plentiful supplies are… Each week the EIA’s “This Week in Petroleum” publishes charts showing this year and last year’s days supply… Relative to last year, only diesel is “tighter” as we leave winter:
Last year’s mild winter (and recent cold weather) is pointed to as the culprit, but days supply has crossed “tighter”… Here is gasoline:
Weak gasoline demand, while disputed by many analysts, pushed current days supply over last year… But the number is close to last year going into its season…
Bottom line is we may see a stealth improvement (assuming one is bullish) in oil inventories showing up first in the days supply measure…
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