Errors In Crude Oil Inventory Data

The Dept. of Energy found documents to uncover what they said were errors in the Energy Information Agency’s weekly inventory report:

“Including one (last) September that was large enough to cause a jump in oil prices, and a litany of problems with its data collection, including the use of ancient technology and out-of-date methodology, that make it nearly impossible for staff to detect errors.”

Oil prices this morning are already down more than $1 to around $81 a barrel. Asia also put out a report which showed a larger-than-expected jump in U.S. crude inventories last week. Here is the OIH path we think it will take.