EIA Says Inventories back to 5-yr average OECD and US

If you look closely you will see that inventories moved above the five-year average only AFTER the late 2014 price collapse had begun, not before. How does that fact fit in with the common perception that is is high inventories that create price drops? In fact, immediately preceding the beginning of the price drop, inventories were at the lowest levels of the decade. 

Please explain.

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5 hours ago, William Edwards said:

If you look closely you will see that inventories moved above the five-year average only AFTER the late 2014 price collapse had begun, not before. How does that fact fit in with the common perception that is is high inventories that create price drops? In fact, immediately preceding the beginning of the price drop, inventories were at the lowest levels of the decade. 

Please explain.

I would love to see the price overlayed on that chart to see the correlation, lag, and what leads. The lovely thing about data and numbers is that while it's possible to misinterpret them, they never lie. 

Anyone care to add price to that data and regraph? 

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