Posted in: Infrastructure,
by Patrick DeHaan on Oct 15, 2013 01:00 PM
The Energy Information Administration, under the Department of Energy, has succomed to the shutdown after lasting nearly two weeks on other funding, and will not be issuing its highly sought after weekly report on petroleum fundamentals.
The report, typically issued Wednesday, gives the market information about changes in supply and demand, and other factors, that help give insight into the condition of the industry. This report is watched closely by both buyers and sellers and can be a major factor in price movements.
The EIA had issued its report for the last two weeks as it was using other funding while the government shutdown started, but that funding has run dry and the market is left somewhat blind.
A similar report issued by the American Petroleum Institute is typically issued Tuesday evenings, but the report can conflict on occasion with what data the EIA releases.
The absence of this report could lead to slight volatility as the market is left to guessing the condition of supply and demand, as well as many other important factors, such as crude production, imports, and exports.
We don't expect much of an impact if any at the pump for the time being, as it does seem like a resolution to the shut down and debt ceiling may be close.