Stupid question about invenories


Stupid question about invenories

Can anyone explain to me why the 5-year average (for inventories) is considered so important?

Say (n)OPEC extends the cuts till the end of 2017 and inventories come in line with the 5-year average. So what? First of all, the 5-year has been moving up steadily for a while now, so it's not really such a great indicator of a pre-glut world, is it? Second, once the cuts expire, it brings 1,8 million bbl back to the market, which means inventories immediately begin to rise again…

So, what difference does it make if we reach the 5-year or not?

Submitted May 04, 2017 at 02:44PM by U5K0
via reddit http://ift.tt/2pEbInT

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s