Crazy Crude Oil Inventory Fact

Happy API day to all! Ever get frustrated by how far apart API and EIA inventory data is?

Many people put more stock into EIA's inventory figures than API's, but did you know that the weekly EIA inventory figures that come out every Wednesday at 10:30am EST are not actual inventory figures, but extrapolations based on its STEO? 

What's more, the extrapolation factors in another estimate--production. Yeah, that's right. I said that EIA reported weekly production figures are estimated. 

In defending its own honor, the EIA said that its track record compared to its monthly production data (which is survey based) was "quite good".

I interpret that to mean that it is extrapolating based on an estimate. Hmmm...

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I remember EIA explaining that it's all estimates because producers report on Friday and there's not enough time to use all the data to come up with "real" figures. But EIA also says historically it has a very good track record of being right. Not sure about API, I try to be zen about it all. it's amusing when one reports a build and the other reports a drop. If one takes them too seriously it could lead to mental damage, I'm sure.

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