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For Crude Oil and Natural Gas, the US Energy Information Administration publishes inventory data each week, with the Natural Gas report released on Wednesday, and Crude on Thursday. The inventory reports contain a lot of information but to summarize, they comprise:
The crude and natural gas prices tend to rise or fall based on the variance of the inventory values Year-on-Year. For example, in September 2016, Natural Gas prices fell, due to the perception that the demand may not be sufficient to decrease stockpiles significantly . The natural gas prices are affected by weather, as gas-generated power is used for air conditioning in the continental US.
The interpretation of the crude and natural gas reports are as follows:
It is important to keep track of the news and updates immediately preceding and succeeding each inventory report, to ensure that your positions are safeguarded against sudden fluctuation in prices.
Commodity Inventories plays an important role in commodity trading, specially in future trading. It directly provides you an idea about commodity demand and supply. Inventories of commodites, with low inventories typically leading to more volatile future prices and increasing the risk of a “stockout” (inventory exhaustion). Commodity Calls collects the data for its members from various sources and present it for the your convenience. Inventory data of commodities is used on the relationship between inventories and commodity futures risk premiums.