Скачать или смотреть Adjustment Factor and Oil Prices

On Wednesday May 22, the Energy Information Administration reported a 4.74 million barrel build in US oil inventories compared to the 1.7 million barrel drawdown expected. The result: a big drop in oil prices in the wake of the release.

And this week's report is only the latest of a series of larger than expected jumps in US oil storage.

However, a single line item of the EIA's weekly Petroleum Balance Sheet called "adjustment" suggests recent US inventory builds could be significantly overstated.

In this video, I explain the adjustment factor, why it's important and how you can use it to better gauge the health of the US oil market.