EIA’s Inventory Data Might Hurdle Oil’s Rise

In the week ending on November 23, US crude oil inventories were 7% above their five-year average—one percentage point more than the previous week. Oil prices and the inventories spread usually move inversely, as you can see in the following chart. If the inventories spread expands more into the positive territory, it might drag down oil prices in the coming weeks. The inventories spread is the difference between inventories and their five-year average.