INSTITUTIONS AND OTHER BACKGROUND INFORMATION
What is the EIA?
The Energy Information Administration (EIA) is an agency within the US Department of Energy, which provides a wide range of information related to energy. Market participants follow the weekly reports on oil and gas inventories. Stockpiles serve as a proxy for oil demand and economic health. Hence, the reports could affect the price of the commodities, while also indicating the state of the general economy. Large stockpiles indicate limited or decreasing demand while contracting accumulation hints at an increased activity and a generally better economic performance.