The EIA excludes lease stocks from new inventory estimates
Effective today, the US Energy Information Administration's (EIA) weekly oil inventory numbers will no longer include about 30 million barrels held in crude oil lease stocks.
Crude oil is sometimes temporarily stored on lease lands that have no access to infrastructure, such as pipelines or rail loading facilities. These "temporary" stockpiles sometimes become permanent, making it difficult to accurately account for total volumes. Since these stocks are not yet available for commercial use, the EIA has eliminated the estimated 31 million barrels from their total inventory calculations.
The new US inventory curve has therefore shifted lower as follows:
The EIA now pegs total US crude oil inventories at 474 million barrels, more inline with estimates from the American Petroleum Institute (API), which was 471 million last week.
Effective October 13, US inventory figures posted to the Energy Statistics page will also exclude lease stocks in accordance with the EIA's new calculations.