We also all know, or should know, that most government statistics are intentionally rigged to paint a rosier picture than actually exists.
The GDP estimates based on unreliable deflator numbers, which is itself based on a bogus inflation number, is questionable at best and rigged at worst.
Unemployment numbers are rigged to seem less severe.
And on and on.
Now this report, which essentially says that the API thought there was a 4 million drop in supplies while the DOE thought 0.8 million.
In the big picture, of course, stockpiles are meaningless - what really matters is production - stockpiles could easily be rebuilt if and only if production exceeds consumption.
BUT, stockpile numbers influence price. As the article states, one trader believed . . .
“If the DOE number had been over 4 million like the API, prices would have probably broken through $82 and we would have been off to the races. "
At what point do the DOE numbers become facially rigged?
It will be interesting to see what happens.
Anybody have stats on average divergence of API and DOE numbers?
http://www.bloomberg.com/apps/news?pid= ... Z2oNrP2Xq4
