My thought always has been the following.
If the companies think oil price is going up, and the production cost is going to go up, it will make sense for them to stockpile right now, in order to take advantage of the higher pricing later on. This could have been one of the effects on oil prices - it drives the prices higher since stockpile increase means there's less supply.
It seems that this thought might be true, after hitting the above $130 high, oil has come down "significantly" to the 120 level within few days, and look what happened to the stockpile (via Summary Weekly Petroleum Data )
So, does it make sense?
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